Pre-Shipment Inspection in China: A Buyer's Guide
The last chance to catch defects before your goods leave China is the pre-shipment inspection. What it checks, how AQL sampling works, and how to tie it to final payment.
Every experienced China buyer learns the same lesson: the goods that look right in the sample can arrive wrong in the container. A pre-shipment inspection (PSI) is the checkpoint between 'the factory says it is ready' and 'you pay the balance'. Done well, it is the single highest-value control in a sourcing program.
What a pre-shipment inspection checks
A PSI is conducted at the factory or warehouse once production is substantially complete (typically 80% or more) and before the goods are packed for export. A competent inspector checks:
- Quantity — that the number of cartons, pieces and styles matches the order.
- Conformance to spec — dimensions, materials, colors, function and the approved 'golden sample'.
- Workmanship — stitching, finishing, assembly, and obvious visual defects.
- Function and safety — that the product works, and any critical safety or compliance checks requested.
- Packaging and markings — carton quality, shipping marks, labels, and whether the packing protects the goods in transit.
AQL: how sampling and pass/fail work
Inspectors do not check every unit — they sample to a statistical standard, most commonly AQL (Acceptable Quality Limit). You agree an AQL level (for example, AQL 2.5 for major defects and 4.0 for minor defects) and the inspection result is pass or fail against that level. The inspection level determines sample size; more units inspected means a more reliable result. Agree the AQL in the purchase order before production, so there is no argument about the standard when the report lands.
Choosing an inspector
- Independent third-party firms — SGS, Bureau Veritas, Intertek, TÜV and QIMA are the established names and will send their own inspectors.
- Factory's 'own' inspector — cheaper, but not independent; if the factory controls the check, the check is not really yours.
- Your own agent or staff — practical for buyers with an in-country presence, and the most aligned with your interests.
Tie the inspection to payment
A PSI only protects you if the money is still in your hands when the report comes back. Structure the order so a meaningful balance is released only after a passing inspection:
- Write the inspection into the purchase order — who inspects, when (production % complete), against which AQL, and at whose cost.
- Schedule the inspection before the factory closes and packs the container — re-checking sealed cartons is harder and less reliable.
- Review the report before releasing the balance; a fail means a re-inspection after corrective action, not a negotiation about partial payment.
- For first orders or new suppliers, add a during-production (DUPRO) check earlier in the run — problems are cheaper to fix mid-line than at the end.
A dated, photo-rich inspection report does double duty: it decides whether you pay, and if a dispute later arises, it is contemporaneous evidence of the goods' condition before shipment. Ask for photos of defects and the carton markings, not just a summary score.
A pre-shipment inspection costs a fraction of what a bad shipment costs — and it changes supplier behavior on its own, because a factory that knows it will be inspected independently builds to the standard instead of hoping you will not notice. Inspection is not suspicion; it is how professional buyers buy.
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