Once production is completed, either voluntarily or as a country’s import requirements, a Pre-Shipment Inspection (PSI) may be carried out on the premise of the manufacturer or the forwarder’s warehouse to ensure that the goods are complete and comply with contractual requirements and specifications. Depending on the size and volume of the ordered goods, the shipments may be done in one full shipment or as partial shipments in two or more than two shipments. The aim is to check the goods in terms of quality (usually limited to visual checking, i.e. dimensional inspection or witness testing (including documents review, etc.), quantity and packing (and marking) as well as document review and verifications to ensure that they meet the agreed-on specifications. PSI may be requested voluntarily or it may be required by countries customs or may be asked by Bank for negotiation reason.
Why should “Pre-Shipment Inspection (PSI)” be important to you?
It helps:
- Cancel the shipment before the goods are shipped in case the materials or the end products do not conform to specifications, expectations or to the contracts, thus saving money.
- Make sure that the supplier has used suitable packaging which is strong enough to prevent damage on the way.
- See if the finished goods or material purchased are stored correctly and in proper conditions.
- Protect your investment if you receive a low quality product or damaged items.
- Prevent you from having disruptions in your own process and that you get your product on time.
- Smoothen transaction processes with the bank.
- Get the necessary assurance and certificate for custom clearance formalities.