What Is Pre-Shipment Inspection (PSI)?

What Is Pre-Shipment Inspection (PSI)?
Introduction
In international trade, building trust between buyers and sellers is not always easy — especially when the parties operate in different countries under distinct customs and trade regulations.
One of the key solutions to minimize risk and ensure product quality is the Pre-Shipment Inspection (PSI).
In this article, we explain what PSI means, why it matters, when it takes place, and what benefits it offers.

What Is a Pre-Shipment Inspection?
A Pre-Shipment Inspection is a process in which an independent third-party inspection company checks the goods before shipment from the country of origin to the destination.
This inspection may include checking the quality, quantity, packaging, labeling, documentation, and even performing technical tests.

Why Is a Pre-Shipment Inspection Conducted?
The main reasons for conducting PSI are:

• Ensuring product quality and compliance with the order

• Preventing shipment of defective, incorrect, or counterfeit goods

• Reducing the risk of disputes between buyer and seller

• Meeting the requirements of banks or customs for letters of credit or clearance

• Ensuring compliance with technical and trade standards of the destination country

When Is Pre-Shipment Inspection Carried Out?
It is performed after production is completed but before the goods are loaded and shipped.
This timing allows inspectors to check the final goods and request corrections if necessary before dispatch.

What Items Are Checked During the Inspection?
Depending on agreements or buyer requirements, the following may be inspected:

Product specifications – Compliance with order and technical details
Quantity – Counting or weighing of items
Quality and performance – Function tests, visual checks, or technical inspections
Packaging and labeling – Ensuring safe and standard packaging
Export documents – Checking invoice, packing list, certificate of origin, labels
Loading conditions – Proper arrangement inside containers or transport vehicles

Which Organizations Conduct PSI?
Pre-shipment inspections are usually performed by international inspection companies.
Some of the most well-known include:

• SGS (Switzerland)

• Bureau Veritas (France)

• Intertek (United Kingdom)

• TUV (Germany)

• Cotecna (Switzerland)

Some countries also publish approved inspection company lists for imported goods.

Who Pays for the Inspection?
The inspection cost is determined by agreement between buyer and seller.
In some countries, inspection is mandatory for imports, and the cost may be borne by either the exporter or importer.

Benefits of Pre-Shipment Inspection

• Ensures goods match the order specifications

• Prevents customs delays, returns, or financial loss

• Builds trust in trade relations

• Speeds up banking documentation and customs clearance

• Reduces legal disputes between parties

Conclusion
Pre-Shipment Inspection is a vital tool in international trade, ensuring buyers receive goods that meet their specifications.
It is especially important in large transactions, technical or high-value goods, and markets with strict customs regulations.