What a pre-shipment inspection covers

A pre-shipment inspection happens when production is finished and the goods are packed, but before they leave the factory. An inspector verifies the quantity, opens a statistical sample of cartons, checks units against your specification, examines the packaging, and confirms the labelling and documents.

The timing is the point. You inspect while the balance payment is still unpaid, because that is the only moment when a supplier has a reason to fix a problem.

When it happens

The standard trigger is 100% of production complete and at least 80% packed.

Inspecting earlier means the inspector cannot verify the final quantity or the packing. Inspecting later, after the goods have left, removes your leverage and adds cost.

Book the inspection about a week before the supplier's stated completion date. Suppliers frequently ask to delay. A delay of a day or two is normal. A repeated delay usually means production is not finished.

Quantity verification

The inspector counts cartons, opens a portion of them, and confirms the count per carton matches the packing list.

This sounds trivial. It is one of the most common failures found, particularly on orders with several product variants where the split between colours or sizes does not match the purchase order.

Sampling: what AQL means

An inspector does not check every unit. On an order of 5,000 pieces that would take days and cost more than the goods.

Instead they check a sample chosen by a statistical method. The common standard is ISO 2859-1, published in the United States as ANSI/ASQ Z1.4. The method is usually called AQL, short for Acceptable Quality Limit.

It works in three steps.

1. The lot size determines a sample size. For example, a lot of 3,201 to 10,000 units at the normal inspection level gives a sample of 200 units.
2. The AQL number you chose determines how many defective units are allowed in that sample.
3. If defects found are at or below the accept number, the lot passes. Above it, the lot fails.

The AQL number is a decision you make, not a fact about the goods. You set it in the purchase order.

Defect classes and typical limits

Defects are sorted into three classes.

Critical. The defect makes the product unsafe, or it breaks a law or regulation. A sharp edge on a child's product. A missing safety certification mark. A structural failure in something that carries weight.

Major. The defect would cause a customer to reject the product or return it. Wrong colour, a function that does not work, a visible crack.

Minor. The defect departs from the specification but most customers would accept the product. A small mark in a place that does not show.

Common settings for general consumer goods are 0 critical, 2.5 major, 4.0 minor. Tighter limits are normal for products where failure matters more.

Two things worth knowing. Critical is almost always set to zero, meaning one critical defect fails the lot. And the numbers only mean something if the defects themselves are defined. This is why the written specification matters. An inspector cannot classify a defect against a standard that does not exist.

Checks on the sampled units

Beyond counting defects, the inspector runs specific checks.

Against the approved sample. The unit in the carton is compared with the sample you approved. This is why keeping and labelling that sample matters.

Dimensions. Measured against your specification with the tolerances you set. If you did not set tolerances, this check cannot be performed properly.

Function. Whatever the product is supposed to do, the inspector makes it do. A hinge opens and closes a set number of times. A switch is operated. A device is powered on.

Workmanship. Finish, seams, welds, moulding marks, colour consistency between units, alignment.

Weight. Both the product and the packed carton. A carton weight that differs from the specification often means the contents differ too.

Packaging and transit tests

Products arrive damaged more often because the packaging failed than because the product was bad.

The inspector checks:

• Inner packaging, whether the unit is protected against movement inside its box
• Carton construction and quality
• Quantity per carton against the packing list
• Carton markings, including shipping marks and handling symbols
• Barcodes, scanned rather than looked at

A drop test is standard on many inspections. A packed carton is dropped a defined number of times from a defined height, on corners, edges and faces, then opened to see whether the contents survived. The usual reference is ISTA or a similar procedure written into your specification.

Labelling and documents

The inspector confirms what is printed on the product and on the packaging.

This includes the country of origin marking, any required safety or certification marks, the language of the labelling, ingredient or material statements, and instructions or warnings if your market requires them.

Some markets require documents to travel with the goods, or require specific wording. If your destination market has rules, put them into the specification so the inspector can check them. An inspector cannot check a requirement you did not tell them about.

What you receive

A report, usually within one working day of the inspection, containing:

• The order details and the quantity found
• The sampling plan used and the AQL levels applied
• A list of defects found, with photographs, sorted by class
• The results of each check performed
• Photographs of the goods, the packing, the carton markings and the loading area
• A result: pass, fail, or pass with conditions

Read the photographs, not only the result. A report can record a technical pass while the pictures show something you would not accept.

What happens when a batch fails

You have four choices, and the balance payment is what makes them available.

Rework and re-inspect. The supplier corrects the defects and pays for the second inspection. This is the normal outcome and it is why you inspect early enough to allow time for it.

Sort. The supplier checks every unit and removes the defective ones. Useful when the defect rate is low but concentrated.

Accept with a discount. Sometimes correct, particularly for minor cosmetic defects on goods you can still sell.

Reject. The last resort, and the reason not to pay in advance.

Agree the consequences of a failed inspection in the purchase order, before production starts. Who pays for rework, who pays for re-inspection, what happens to the shipping schedule. Negotiating this after a failure is much harder.

Cost, and when it is worth it

A single inspection at one factory typically costs a few hundred US dollars, priced per inspector per day.

On a small first order that can be a noticeable percentage of the order value. It is still usually worth it, because the alternative is discovering the problem after paying, after shipping, and after paying duty on goods you cannot sell.

The value is highest on a first order with a new supplier, and lower on a repeat order of a proven product from a factory with a record. Many importers inspect every shipment for the first year, then move to a reduced frequency.

What to do first

Write the defect definitions into your specification and set your AQL levels in the purchase order. Both need to exist before production starts.

An inspection is only a measurement against a standard. If you did not set the standard, the inspection cannot tell you much.

Verified August 2026. Next review February 2027.