A first order asks a buyer to trust that the container holds what the contract says. A pre-shipment inspection replaces that trust with a report written by someone who has no stake in the sale. Buyers who ask for one are not being difficult. They are doing what experienced importers do by default.
What is a pre-shipment inspection?
A pre-shipment inspection (PSI) is an independent check of the goods at or near the loading point, before the Bill of Lading is issued. The inspector compares what is physically there with the contract: quantity, quality, packing and marking. For food cargo the inspector also draws samples and sends them to a laboratory. The result is an inspection report, and often a certificate, that the buyer holds before releasing payment.
Who carries out inspections in India?
The large international agencies, SGS, Intertek, Bureau Veritas and TÜV among them, all operate in India, with offices near the main ports and agricultural regions. The buyer normally chooses and appoints the agency. We welcome SGS or Intertek access at the loading port and give the inspector the contract, the specification and the stuffing schedule.
What do inspectors check on a food shipment?
Typically: the weight or count against the packing list; the packing (for example 25 kg PP-woven bags or 50 kg jute) and the marks on each bag; the condition of the container, which should be clean, dry and free of odour; the loading itself and the seal number. They draw samples by a standard method and send them for tests named in the contract. For rice that is moisture, broken-grain percentage, grain length and foreign matter. For spices and vegetables it can include pesticide residue, aflatoxin and microbial tests.
The more specific the contract, the more useful the report. "Premium quality" cannot be inspected. "Broken grain under 1%, moisture 12 to 13%" can.
What is the difference between pre-production, pre-shipment and loading supervision?
Pre-production checks raw material and capability before work starts. During-production checks catch problems while there is still time to fix them. Pre-shipment checks the finished, packed lot. Loading supervision means the inspector stays through the container loading and seals it, which closes the gap between "the lot was fine" and "this container is that lot". For a first order on bulk food, a pre-shipment inspection with loading supervision is the usual choice.
How does an inspection fit with a letter of credit?
An L/C can list an inspection certificate from a named agency as a required document. If it does, the certificate must match the L/C wording exactly, or the bank treats it as a discrepancy and payment stalls. Agree the agency, the certificate title and the contents before the L/C is issued, not after. The payment side of this is in LC vs TT for a first order.
Who pays, and how much does it cost?
The party who asks for the inspection normally pays, which in practice means the buyer. Fees depend on the scope (inspection only, or with laboratory tests and loading supervision), the location and the number of man-days. Ask the agency for a written quote that lists the tests separately. We do not mark up or intermediate the agency's fee.
When should I book it?
As soon as the stuffing date is confirmed, and well before it. The agency needs the contract, the specification and the production or loading schedule. A booking made on the day of loading puts a delay on the whole shipment, which is exactly the kind of delay we describe in how long an order from India takes.
What happens if the lot fails?
The contract decides, which is why the contract should say it before the inspection happens. The usual outcomes are re-sorting or re-processing the lot, replacing it, or agreeing a price adjustment that the buyer accepts in writing. What must not happen is shipment on the strength of a promise to fix it later. That is the whole point of inspecting before the Bill of Lading is issued.
If you want an inspection on your first order, tell us the agency when you send the enquiry and we will build the schedule around it.
— Nitik · Darsavio EXIM