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Pre-shipment inspection (PSI) and quality control for importers

A pre-shipment inspection (PSI) is a check of the goods at the supplier's site before they are loaded into a container and before you pay the balance. An independent inspector draws a sample according to an agreed plan, usually based on ISO 2859-1 and an AQL, checks it against your specification and issues a report with a result. Once the goods reach the destination port, a claim is slower, more expensive and harder to enforce, which makes PSI one of the cheapest safeguards in importing.

By Hiram Trade Editorial Desk

Published

6 min read

When to book an inspection

A PSI is usually booked when at least 80 percent of the order is finished and packed, so that the sample is representative. There are other types of checks too:

TypeTimingPurpose
Factory auditBefore the first orderWhether the supplier has capacity, processes and exists at the stated address
Pre-production checkBefore production startsRaw materials, components, golden sample
During-production checkPart of the batch finishedCatch errors before they repeat across the batch
Pre-shipment inspectionBatch finished and packedDecision to ship and pay the balance
Loading supervisionAt container loadingQuantity, packaging condition, seal, match with packing list

PSI matters most for a first order with a new supplier, made-to-order goods, products subject to safety rules (for example CE marking) and payment by letter of credit, where banks check documents, not goods.

AQL sampling and ISO 2859-1 basics

ISO 2859-1 is the international standard for sampling plans for inspection by attributes (conforming or non-conforming), indexed by acceptance quality limit (AQL). A third edition was published in 2026, replacing the 1999 edition and its amendments and adding, among other things, a formal skip-lot procedure. State in the contract which edition you use.

How it works in practice:

  1. Lot size (say 5,000 units) and inspection level give a sample size code letter. The standard provides three general inspection levels (I, II, III) and four special levels (S-1 to S-4); level II is the one most commonly used in practice.
  2. The code letter and the AQL give the sample size and the acceptance and rejection numbers.
  3. The inspector draws the sample, classifies defects and compares their count with the table: the lot is accepted or rejected.

Defects are usually classed as critical (safety risk or regulatory breach), major (product unusable or unsaleable) and minor (a deviation that does not prevent use). Each class gets its own AQL. The actual values are a commercial decision between buyer and supplier; the standard does not say which AQL suits a given product.

An important limitation: the AQL is not a guarantee that the lot contains no more than that percentage of defects. It is a parameter of the sampling plan which, across a continuing series of lots and with switching rules (normal, tightened, reduced inspection), protects the buyer against consistently worse quality. For a single lot, there is always some risk of accepting a worse lot.

What the inspector checks

A typical PSI scope:

  • quantity: cartons and units against the order and packing list,
  • appearance and workmanship: visible defects, finish, colour against the golden sample,
  • dimensions and weight with tolerances,
  • on-site function tests (operation, assembly, basic electrical safety),
  • marking and labels: marks, language, barcodes, importer details, CE marking if required,
  • packaging: strength, shipping marks, carton drop test,
  • special tests: moisture, content, laboratory analysis, if agreed.

For agricultural and bulk goods (for example coconut oil or copra), AQL is usually replaced by sampling for laboratory analysis and checks of weight and hold or container condition. See our guide to importing coconut oil from the Philippines.

The report should contain photos, a classified defect list, the result (pass, fail, pending decision) and the inspector's signature. Hiram does not book inspections or verify reports; you arrange the inspection directly with an inspection company.

What to put in the contract

An inspection only works if the contract says what follows from it. Agree in writing:

  • who chooses and pays the inspection company, and who pays for re-inspection after a failure (usually the supplier),
  • sampling standard: ISO 2859-1 with the edition, inspection level, AQL for critical, major and minor defects,
  • the specification and golden sample used for comparison,
  • the list of tests on site and in the lab,
  • consequences of failure: sorting, rework, re-inspection, deadline, termination right,
  • link to payment: balance due after a passing report, and under a letter of credit the report as a required document,
  • inspector access to the factory and the supplier's duty to make the lot available.

For more on clauses see international sales contract, and for documents see international trade shipping documents.

Common mistakes

  • inspection booked when the goods are already in the container,
  • no golden sample, so the inspector has nothing to compare colour or finish against,
  • one AQL without separate defect classes,
  • a failed report, but the contract says nothing about next steps and the goods ship anyway,
  • the supplier picks and pays the inspector without the buyer's involvement.

Checklist

  • Specification and golden sample agreed in writing.
  • Sampling standard, inspection level and AQL per defect class.
  • Inspection timed when at least 80 percent of the lot is finished and packed.
  • Re-inspection rules and costs.
  • Balance payment linked to the report result.

On Hiram you can compare quotes by total landed cost under Incoterms 2020; ask suppliers to show inspection cost as a separate line in their quote. Publish your request on the Hiram market.

Sources

This article is for information only and is not legal, tax or customs advice. Rules and rates change: check the current official sources or consult an adviser before you decide.

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