Most quality problems with Chinese suppliers are found in the wrong place: your warehouse. By then the balance is paid, the goods have crossed an ocean, and your leverage with the factory has gone. A pre-shipment inspection moves that check to the factory floor, before you pay and before anything ships.
This guide explains what a pre-shipment inspection is, what a proper one covers, when to book it, how to read the report, and what it costs. It is written for importers and brands buying from factories in China, whether this is your first order or your fiftieth.
What is a pre-shipment inspection?
A pre-shipment inspection (often shortened to PSI) is an independent quality check of finished goods at the factory, carried out before the final payment and before the goods are loaded for export.
An inspector visits the factory, pulls a random sample from the finished and packed order, and checks it against your purchase order, your approved sample and your written specification. You receive a report with photos and a clear result, so you can decide whether to release the balance and ship.
The key word is independent. The factory's own QC team works for the factory. An independent inspector works for you.
Why it matters more in China than you might expect
Most orders from China are paid with a deposit up front, commonly 30%, and the balance before shipment. That payment structure is exactly why timing matters. Before the balance is paid, the factory has every reason to fix a problem. After it is paid, you are relying on goodwill and long-distance arguments.
A failed shipment usually costs far more than the goods themselves: freight both ways, customs, storage, missed retail slots, refunds and damage to your own customers' trust. An inspection is a small, fixed cost set against all of that.
When to book it
The industry standard is simple: inspect when production is 100% complete and at least 80% of the goods are packed in export cartons. Inspect earlier and you only see part of the order. Inspect after loading and it is too late to fix anything.
- Book a few working days in advance so an inspector can be scheduled.
- Leave enough time before your shipping date for rework and a re-inspection if needed.
- Always inspect before you release the balance payment.
For larger or more complex orders, a during-production inspection at around 20 to 50% completion is worth adding. It catches problems while there is still time to correct the rest of the run, rather than discovering them in a finished order.
What a proper inspection covers
1. Quantity
The inspector confirms the number of finished and packed units matches your purchase order. Short shipments are more common than most buyers expect.
2. Random sampling to an international standard
Inspectors do not check every unit. They check a statistically valid random sample, using the AQL (Acceptance Quality Limit) tables in ISO 2859-1. The sample size depends on the order quantity and the inspection level, with General Inspection Level II being the usual default.
Defects are classified as critical, major or minor, each with its own limit. Common settings are:
- Critical defects: zero accepted. Anything unsafe or non-compliant fails the order.
- Major defects: AQL 2.5 is common. Faults a customer would return the product for.
- Minor defects: AQL 4.0 is common. Small cosmetic issues within agreed limits.
These are starting points, not rules. Agree your AQL levels with the factory in writing before production starts, so nobody argues about the standard after the inspection.
3. Workmanship and appearance
Finish, colour, assembly and visual defects are checked against your approved sample. This is why every order should have a physical approved sample, held by both you and the factory.
4. Measurements and specifications
Dimensions, weight and materials are checked against your written specification and agreed tolerances. "The same as last time" is not a specification.
5. Function and safety tests
Products are tested on site to confirm they work as intended. For electrical products this can include basic safety and function checks. Specialist laboratory testing for certification is a separate service and needs separate planning.
6. Packaging and labelling
Good products in the wrong cartons still get held at customs or rejected by retailers. A proper inspection checks:
- Shipping marks and carton labels are correct
- Barcodes scan and match the right SKUs
- Warning labels and country of origin markings are in place
- Retail packaging matches your approved artwork
- Carton dimensions and weights match the packing list
- Cartons survive a standard drop test
How to read the report
A good inspection report gives you a clear result, backed by photos of every finding. There are three outcomes:
- Pass: the order meets the agreed standard. Release the balance and book the shipment.
- Fail: the factory reworks or replaces the defective goods, followed by a re-inspection.
- Pending: borderline findings that need your decision, such as a colour variation that may or may not matter to your customers.
The most important rule: never release the balance on a failed report. It is the only leverage you have left.
What does it cost?
Independent inspections are usually charged per inspector-day, which covers one product inspection at one factory. Complex products, large orders or remote locations take longer and cost more.
Far East Advisory inspections start from $300 for straightforward products in the Pearl River Delta, with a full written report within 24 hours. For most orders, that is a fraction of a percent of the order value.
Common mistakes we see
- No written specification. If it is not written down, the inspector has nothing to measure against, and the factory has room to substitute.
- Letting the factory choose the sample. The inspector must pull random cartons from across the whole order.
- Booking too late. An inspection the day before loading leaves no time to fix anything.
- Skipping it on repeat orders. Quality often slips on second and third orders, once the factory feels the relationship is secure.
- Paying the balance before the report arrives. This removes the whole point of inspecting.
Frequently asked questions
Do I need an inspection if the factory has its own QC team?
Yes. The factory's QC team reports to the factory. An independent inspection gives you an unbiased view and a documented result you can act on.
How long does an inspection take?
Most inspections take one day on site. With Far East Advisory, the report follows within 24 hours.
What do I need to provide?
Your purchase order, written specification, approved sample or reference photos, artwork and labelling files, and the AQL levels you have agreed with the factory.
What happens if the order fails?
You hold the balance, the factory reworks or replaces the defective goods, and a re-inspection confirms the fix before you pay and ship.
The Complete Pre-Shipment Inspection Checklist
Everything in this article as a practical checklist you can send to your inspector or your factory before your next order.