Pre-shipment inspection: the PSI protocol in China

Pre-shipment inspection (PSI) in the trade takes place when production is complete and the cartons, at least four-fifths according to industry convention, are packed and marked. An independent inspector goes to the factory, draws cartons at random, and judges the finished goods against the specifications and the reference sample. It is the last possible check before the container leaves the workshop.

Timing matters as much as content. As long as the goods are on site, sorting, reworking or rejecting remains realistic. Once the container has left, the same defect becomes a cross-border dispute: discount negotiated from afar, return impossible, sometimes freight return at the buyer's expense. Pre-shipment inspection turns this risk into a decision made on the spot, before the balance payment.

A useful inspection starts from a written protocol, drawn from the specifications and the reference sample, the golden sample. Without this document, the inspector judges by impression and the report carries no weight in a dispute. The instruction sets what is checked, with what means, and what thresholds trigger a rejection.

The visit is scheduled a few days before the loading date, to allow time for correction if the verdict is unfavorable. A standard order is inspected in one day; more time is needed when volumes or references multiply. The factory prepares the ground: access to cartons, measuring table, reference sample available.

One does not examine an entire lot: one samples it. The reference standard is ISO 2859-1, inspection by attributes, whose general level II serves as the default setting. For the declared lot size, it gives the number of pieces to draw and the acceptance and rejection numbers. The drawing is done at random from the cartons, not from a pallet prepared for the visit.

Defects are classified into three categories: critical, major, minor. The usual industry thresholds use an AQL of 2.5 for major defects and 4 for minor defects, with no critical defect tolerated. If the number of observed defects exceeds the acceptance number, the lot is rejected. These thresholds are tightened for a toy, a food-contact product or a safety part, and are written in the protocol before the visit.

The report arrives within days after the visit. It states the quantities inspected, classifies each defect as critical, major or minor, and links it to a written requirement, with dated photos as evidence. It includes the measurements taken, the calculation of the defect rate against the AQL thresholds, and a conclusion: conforming, non-conforming, or pending correction.

This document serves three purposes. It underpins the decision to ship or reject, before the balance is paid. It supports a discount negotiation or rework at the factory, with defect parts quantified. And in case of a dispute, it serves as dated evidence, cross-referenced with the proforma invoice and contract. A report without photos, measurements or defect classification fulfills none of these three roles.

Three outcomes exist. Conforming report: the goods ship, the balance is paid on schedule. Non-conforming report: the factory sorts, reworks or reproduces, and a re-inspection verifies before loading. In between, a discount is negotiated when defects are real but tolerable for the intended use. The decision is made on the report, not on the factory's word.

The leverage lies in the payment schedule. As long as the balance is unpaid, the buyer decides; once paid in full, only the factory's goodwill remains. That is why pre-shipment inspection occurs before that payment, never after. A firm refusal costs days; defective goods received at destination cost freight, the season, and sometimes the customer.

A pre-shipment inspection relies on statistical sampling: it provides a probable picture of the lot, not an absolute guarantee. A rare, scattered defect may slip through. It does not replace the lab tests required by certain regulations, nor compliance procedures such as CE marking for the European market. It verifies what has been produced, not what should be produced.

It rules on finished goods, too late to correct a root cause: a batch may drift after the inspector leaves. And it stops before loading: supervising container stuffing, bracing and sealing is a separate service, loading supervision. A robust practice links in-process inspection with pre-shipment inspection: the first corrects the cause, the second authorizes shipment.

Sorva is a brokerage and sourcing firm active between Europe and China. Our sinophone team in Guangzhou drafts the inspection protocol based on your specifications, schedules the visit to your manufacturer, and reviews the report with you, threshold by threshold. In case of non-conformity, this team negotiates rework or discount in Chinese, on-site, then conducts a re-inspection before loading.

In most cases, you pay no fees: you open a case, we negotiate the goods for you, and we take a volume-based commission calculated on the ex-works value. Open a case with your product and timeline: we will tell you where to place pre-shipment inspection in your control plan, and what its protocol should verify.