in this article provide you with information about second or third party inspection activities, which are done to confirm delivered goods have the same specifications that were stated in the purchase order.

Goods Inspection – Scope

The scope of work for goods inspection is very similar to that of pre-shipment inspection.

Goods and commodity inspection have the same meaning and same definition and refer to the inspection of specific goods that a buyer purchases from seller.The buyer might be the end-user, an engineering company under the contract of an end-user, and the seller might be an equipment manufacturer or its distributor or individual supplier.

Generally, the inspection scope includes the following: document review, visual quality and quantity inspection, packing, marking and loading inspection. The scope of inspection has more of a commercial approach than a technical approach.

goods inspection is a term which is normally is used for finished material or equipment inspection. Goods and commodity inspection is also called pre-shipment inspection.But there is some scope of work in pre-shipment inspection that is not included in the goods or commodity inspection, such as price verification services to the customs authorities, etc.

Based on the agreement between the buyer and seller, the goods might be inspected by the buyer’s own inspector or independent third party inspector. The proforma invoice, purchase order, letter of credit, goods specification and drawing must be reviewed by the inspector before the physical inspection of goods can occur.

The third party inspector must provide an inspection visit report to the purchaser and issue the inspection release note if the inspection result was satisfactory. By receiving the release note, the seller can organize for shipment. It is necessary to notify the shipment date to the inspector in advance (if the loading inspection is in the scope of inspection). If the purchase fund is transferred through a letter of credit, then the third Party Inspection Company must issue an inspection certificate.The inspection certificate is almost always issued after the shipment of the goods.

The documents that must be submitted by the seller to the inspection company for issuing the inspection certificate are the bill of lading, certificate of origin and signed and approved packing list.But if the goods value is paid with T/T (Telegraphic Transfer), in other words through a wire transfer system, then these formalities are not necessary.But this is done only for small purchases or when the buyer and seller trust each other and do not want to spend lots of time opening a LC and following the procedures.

In the T/T payment method, the inspection certificate is not necessary, and the inspection report and release note might be enough for the buyer.The scope of inspection depends on the buyer. They might order a third party inspection company for 1 man-day and request a visual inspection, quantity check, packing and marking inspection or order several days to witness some tests.