Pre-Shipment Inspection (PSI): Process, Checklist and AQL Guide
Pre-Shipment Inspection (PSI) is a product quality inspection conducted before goods are shipped from the manufacturer or supplier. It verifies whether finished products meet agreed requirements for quantity, workmanship, dimensions, function, labeling, packaging, and other product specifications.
A PSI is generally conducted when 100% of production is complete and at least 80% of the goods are packed. At this stage, an inspector can select samples from the finished production lot and evaluate the condition of the goods before shipment.
Pre-shipment inspection is widely used in international sourcing as a final quality control point before goods leave the factory. The inspection provides documented findings that buyers can use to review product quality, identify non-conformities, and determine whether corrective action or reinspection is required before shipment.
What is a Pre-Shipment Inspection?
A pre-shipment inspection, also known as a PSI inspection, evaluates finished goods against defined product, order, and packaging requirements before shipment.
The inspection typically covers:
- Product quantity
- Workmanship and appearance
- Product specifications
- Dimensions and measurements
- Function and performance
- On-site product tests
- Labels and markings
- Barcodes
- Retail packaging
- Export cartons
- Shipping marks
The inspector records the findings in a pre-shipment inspection report, usually supported by photographs, measurements, test results, defect information, and sampling results.
The report documents the condition of the inspected shipment at the time of inspection. It does not make the buyer’s shipment decision. The buyer reviews the inspection result against the applicable purchasing and quality requirements.
When is a Pre-Shipment Inspection Conducted?
A pre-shipment inspection takes place near the end of production, after the goods are sufficiently complete for the inspector to evaluate the actual shipment.
PSI is commonly scheduled when:
- 100% of the products have been manufactured
- At least 80% of the products are packed
- Final packaging materials are available
- Product labels and markings have been applied
- Export cartons are available for inspection
- The shipment has not yet been dispatched
The timing matters because the inspector needs access to representative finished goods.
If the inspection takes place before production or packaging is sufficiently complete, some final product, labeling, assortment, or packaging conditions may not be available for verification.
Scheduling the inspection immediately before dispatch can create a different problem. If significant defects are identified, there may be insufficient time for sorting, rework, corrective action, or reinspection without delaying shipment.
What is Checked During a Pre-Shipment Inspection?
The exact pre-shipment inspection checklist depends on the product, purchase order, specifications, approved samples, destination requirements, buyer instructions, and agreed inspection scope.
Several areas are commonly included.
Quantity Verification
The inspector verifies the quantity available at the factory and compares it with the order information.
Checks may include:
- Total production quantity
- Packed quantity
- Number of export cartons
- Quantity per carton
- SKU quantities
- Size and color assortment
- Product variants
Quantity verification can identify shortages, excess quantities, incorrect assortments, and packing discrepancies before the goods are shipped.
Workmanship and Appearance
Randomly selected products are examined for visible workmanship defects and manufacturing inconsistencies.
Depending on the product, findings may include:
- Scratches
- Stains
- Dents
- Cracks
- Poor stitching
- Loose components
- Misalignment
- Glue marks
- Surface damage
- Poor finishing
- Color variation
- Assembly defects
Observed defects are recorded and classified according to the agreed defect criteria.
Product Specification Verification
Products are compared with the specifications and reference materials provided for the inspection.
These may include:
- Purchase orders
- Approved samples
- Technical specifications
- Product drawings
- Bills of materials where relevant
- Color references
- Buyer inspection instructions
The purpose is to determine whether mass-produced goods correspond with the approved product requirements.
A product may appear acceptable during a general visual inspection while still containing an incorrect material, dimension, accessory, color, configuration, or other specification deviation.
Dimensions and Measurements
Measurements are taken where dimensions form part of the product requirements.
Depending on the product, inspectors may check:
- Length
- Width
- Height
- Diameter
- Thickness
- Weight
- Garment measurements
- Component dimensions
Results are compared with the specified dimensions and tolerances.
Dimensional verification is particularly relevant where incorrect measurements can affect assembly, fit, function, packaging, or customer acceptance.
Function and On-Site Tests
Inspectors may perform functional and product-specific tests during PSI.
The tests depend on the product category and agreed inspection scope.
Examples may include:
- Assembly checks
- Function tests
- Stability checks
- Product drop checks where specified
- Adhesion checks
- Zipper or fastener checks
- Power-on checks
- Barcode scanning
- Carton drop tests
- Product weight checks
The applicable test method, sample quantity, and acceptance criteria should be defined before inspection where specific performance requirements apply.
Factory-based inspection tests also have limitations. Laboratory testing may still be required where safety, regulatory compliance, material properties, chemical composition, or technical performance cannot be adequately verified through an on-site inspection.
Labeling and Barcode Verification
Labeling errors can result in receiving problems, retailer rejection, relabeling work, or compliance concerns.
Inspectors may verify:
- Product labels
- Model numbers
- SKU information
- Barcodes
- Country-of-origin markings
- Warning labels
- Care labels
- Retail packaging information
- Required product markings
Where barcode verification forms part of the inspection scope, codes may also be scanned to check readability and encoded information.
Packaging and Carton Inspection
Packaging is evaluated against the approved packing requirements.
Checks commonly include:
- Retail packaging
- Polybags
- Protective materials
- Inner cartons
- Export cartons
- Carton dimensions
- Quantity per carton
- Carton sealing
- Shipping marks
- Packaging condition
Inspectors may also check whether the actual packing arrangement corresponds with the approved packaging specification.
A packaging inspection can provide more detailed verification where packaging quality is a significant part of the inspection requirement.
Pre-Shipment Inspection Checklist
A typical PSI checklist can be summarized as follows:
| Inspection Area | Typical Checks |
| Quantity | Order quantity, carton quantity, SKU and assortment |
| Workmanship | Scratches, stains, cracks, stitching, assembly and finishing |
| Specifications | Model, material, color, construction and accessories |
| Measurements | Dimensions, weight, thickness and specified tolerances |
| Function | Operation, assembly and product-specific checks |
| On-Site Tests | Defined functional, performance or packaging checks |
| Labeling | Product labels, warnings, origin markings and SKU information |
| Barcodes | Barcode number, placement and scanning |
| Packaging | Retail packaging, protective materials and carton condition |
| Shipping Marks | PO information, carton marks and destination information |
The checklist should be adapted to the actual product and purchase requirements. A generic checklist alone cannot address every product-specific quality risk.
How Does the Pre-Shipment Inspection Process Work?
A structured PSI generally follows several stages from inspection preparation through reporting.
1. Confirm Production and Packing Status
Before the inspection begins, the factory’s production status is confirmed.
For a standard PSI, production should generally be complete and at least 80% of the goods packed.
This helps ensure that the inspector is evaluating goods representative of the actual shipment.
2. Verify Available Quantity
The inspector verifies the finished and packed quantities available at the factory.
This establishes whether the shipment is sufficiently complete for inspection and provides the lot information needed for the applicable sampling plan.
3. Select Samples
Products are selected from the available production lot according to the agreed sampling requirements.
Samples should be selected from different cartons and available locations within the shipment where practical.
This reduces the risk of inspecting only products specifically prepared or presented by the factory.
4. Inspect Workmanship
Selected products are visually examined for workmanship and appearance defects.
Observed defects are recorded and classified according to the agreed defect criteria.
5. Verify Specifications and Measurements
The inspector compares selected samples with the approved specifications and performs applicable measurements.
Results outside the defined specifications or tolerances are documented.
6. Perform Functional and On-Site Tests
Applicable product-specific tests are performed according to the inspection requirements.
The method, sample quantity, and results are recorded where relevant.
7. Check Labels and Packaging
Labels, barcodes, retail packaging, export cartons, packing arrangements, and shipping marks are verified against the applicable requirements.
8. Issue the Inspection Report
After the inspection, the findings are compiled into a report covering the inspected shipment, identified defects, measurements, tests, packaging, labeling, photographs, and overall inspection result.
The buyer can then review the report before making the shipment decision.
How AQL Sampling Works in Pre-Shipment Inspection
Inspecting every unit in a large shipment is often impractical. Pre-shipment inspections therefore commonly use statistical sampling to evaluate representative units from the production lot.
AQL (Acceptance Quality Limit) is frequently used to determine sample sizes and acceptance criteria for product inspections.
The sampling plan considers factors such as:
- Lot size
- Inspection level
- Sample size code
- Selected AQL
- Number and classification of defects identified
Sampling procedures may be based on standards such as ISO 2859-1.
For example, an inspector may select a defined number of units from a shipment and inspect those units for workmanship defects. The number of defects identified is then compared with the applicable acceptance and rejection criteria.
AQL does not mean that the selected percentage of defective products is automatically acceptable throughout the shipment. It is a statistical sampling framework used to determine whether the inspected lot satisfies the defined acceptance criteria.
More information about sample sizes and acceptance numbers is available in ECQA’s AQL guide.
Critical, Major and Minor Defects
Defects identified during pre-shipment inspection are commonly classified according to their severity.
Critical Defects
A critical defect may create a safety hazard, violate an applicable requirement, or present a serious risk to the user.
Examples may include:
- Dangerous sharp points
- Electrical safety hazards
- Missing mandatory safety information
- Hazardous product construction
Critical defects are generally subject to very strict acceptance criteria. The applicable acceptance number should follow the agreed sampling plan and inspection requirements.
Major Defects
A major defect can substantially affect product function, usability, durability, appearance, or commercial acceptance.
Examples may include:
- Product malfunction
- Incorrect dimensions
- Broken components
- Significant assembly defects
- Incorrect product configuration
- Significant appearance defects
Minor Defects
A minor defect is generally a smaller deviation that does not significantly affect normal product use.
Examples may include:
- Small cosmetic imperfections
- Slight finishing inconsistencies
- Minor appearance deviations
The exact classification should be defined according to the product, defect list, approved requirements, and buyer criteria.
What Happens If a Pre-Shipment Inspection Fails?
A failed PSI indicates that the inspected shipment did not meet one or more of the defined acceptance criteria at the time of inspection.
The inspection report should first be reviewed to determine the reason for the result.
Common causes include:
- Excessive major or minor defects
- Critical defects
- Failed functional tests
- Incorrect dimensions
- Quantity shortages
- Wrong product specifications
- Labeling errors
- Packaging problems
The appropriate corrective action depends on the findings.
The factory may need to:
- Identify affected products or production lots
- Determine the cause of the problem
- Repair or replace defective products
- Sort the affected production
- Rework non-conforming goods
- Correct labels or packaging
- Conduct additional internal quality checks
- Arrange a reinspection where required
A failed inspection does not automatically determine whether the goods can or cannot be shipped. The final shipment decision remains subject to the buyer’s requirements and acceptance procedures.
Where corrective work has been completed, a reinspection may be arranged to evaluate the revised shipment condition.
What Does a Pre-Shipment Inspection Report Include?
A pre-shipment inspection report records what was observed and tested at the factory during the inspection.
A detailed report may include:
- Factory information
- Purchase order information
- Product details
- Order and available quantities
- Production and packing status
- Sample size
- AQL information
- Defect quantities
- Critical, major, and minor defect findings
- Product photographs
- Defect photographs
- Measurement records
- Functional test results
- Label and barcode checks
- Packaging findings
- Carton information
- Inspection conclusion
Photographic evidence provides additional visibility into the inspected products, packaging, and identified defects, particularly when the buyer is reviewing the shipment remotely.
The report should be read together with the applicable specifications and acceptance criteria when determining the next action.
During Production Inspection vs Pre-Shipment Inspection
During Production Inspection (DUPRO) and Pre-Shipment Inspection take place at different stages of manufacturing.
| During Production Inspection | Pre-Shipment Inspection | |
| Timing | While manufacturing is underway | After production is complete |
| Typical production stage | Approximately 10%–60% completed | 100% produced, at least 80% packed |
| Main focus | Ongoing production quality and progress | Finished shipment quality |
| Corrective action | Remaining production can still be adjusted | Finished goods may require sorting or rework |
| Production progress | Important part of inspection | Production should already be complete |
| Shipment decision | Usually too early for final shipment review | Provides information for pre-shipment review |
A During Production Inspection (DUPRO) can identify recurring problems while manufacturing is still underway. Corrective action can then be applied before the remaining quantity is produced.
PSI takes place later and evaluates the finished production lot before shipment.
For orders with higher quality risks, both inspections may be used at different stages: DUPRO during manufacturing and PSI after production is completed.
Pre-Shipment Inspection vs Container Loading Supervision
PSI and Container Loading Supervision (CLS) both occur close to shipment, but they address different control points.
| Pre-Shipment Inspection | Container Loading Supervision |
| Conducted before shipment | Conducted during container loading |
| Focuses on finished product quality | Focuses on the loading process |
| Uses product sampling | Monitors goods being loaded |
| Checks workmanship and specifications | Checks carton and loading condition |
| May include functional tests | Verifies container and seal information |
| Reviews packaging and labels | Verifies loading quantities and handling |
A PSI evaluates the finished goods before shipment. Container Loading Supervision verifies relevant shipment and loading conditions when the goods are being loaded.
When Should You Use Pre-Shipment Inspection?
PSI can be useful when product quality needs to be independently verified before goods leave the factory.
Common situations include:
Working With a New Supplier
A new supplier may not yet have an established quality history. PSI provides documented information about the finished goods before the first shipment is released.
Large Production Orders
Quality problems across a large order can create substantial sorting, rework, return, and replacement costs after delivery.
Sampling the finished production lot before shipment provides an additional quality control point.
Previous Quality Problems
If earlier shipments contained defects, incorrect specifications, labeling problems, or packaging issues, PSI can verify the condition of the subsequent order before shipment.
Detailed Product Specifications
Products with multiple dimensions, components, accessories, finishes, variants, or workmanship requirements can benefit from systematic verification against the approved specifications.
Multiple SKUs or Product Variants
Orders containing several models, colors, sizes, or configurations create additional risks involving quantities, assortments, labels, and packing.
Complex Packaging and Labeling Requirements
Retail packaging, warning labels, barcodes, shipping marks, assortment requirements, and destination-specific markings can be checked before the shipment leaves the factory.
Buyer or Contractual Requirements
A buyer, retailer, sourcing program, or contractual specification may require pre-shipment inspection before goods are approved for shipment.
How to Prepare for a Pre-Shipment Inspection
Clear inspection requirements improve the usefulness of PSI results.
Before the inspection, relevant documents and references should be provided where applicable, including:
- Purchase order
- Product specifications
- Approved samples
- Technical drawings
- Measurement charts
- Color references
- Packaging specifications
- Label artwork
- Barcode information
- AQL requirements
- Defect classifications
- Required on-site tests
- Special buyer requirements
Acceptance criteria should be sufficiently clear for the inspector to determine whether the observed products conform to the agreed requirements.
Pre-shipment inspection should be scheduled when production is complete and sufficient finished goods are packed for representative evaluation. Define the specifications, sampling plan, defect criteria, on-site tests, labeling, and packaging requirements before inspection so that the resulting PSI report provides a clear basis for reviewing the shipment before release.
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