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 quality, quantity, workmanship, dimensions, function, labeling, packaging, and other 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 shipment before it leaves the factory.
Pre-shipment inspection is widely used in international sourcing because it provides buyers with an independent assessment of finished goods while corrective action can still be taken before shipment.
What is a Pre-Shipment Inspection?
A pre-shipment inspection, also known as a PSI inspection, evaluates finished goods against defined product and order requirements before shipment.
The inspection scope 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
Inspectors record their findings in a pre-shipment inspection report, usually supported by photographs, measurements, test results, defect information, and sampling results.
The report provides evidence of the condition of the shipment at the time of inspection and supports the buyer’s shipment decision.
When is a Pre-Shipment Inspection Conducted?
A pre-shipment inspection should take place late enough for the inspector to evaluate representative finished goods while leaving sufficient time to address identified problems.
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
Inspection timing is important.
When an inspection takes place before production or packaging is sufficiently complete, the inspector may be unable to verify the actual finished shipment. Scheduling the inspection immediately before dispatch can also leave limited time for corrective action or reinspection.
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, and buyer instructions.
Most product inspections cover several core areas.
Quantity Verification
The inspector first 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 shipment.
Workmanship and Appearance
Randomly selected products are examined for visible workmanship defects and manufacturing inconsistencies.
Depending on the product, defects may include:
- Scratches
- Stains
- Dents
- Cracks
- Poor stitching
- Loose components
- Misalignment
- Glue marks
- Surface damage
- Poor finishing
- Color variation
- Assembly defects
The inspector records identified defects and classifies them 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
Specification verification helps identify differences between the approved product and mass-produced goods.
Dimensions and Measurements
Measurements are taken when 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 specified dimensions and tolerances.
Dimensional verification is particularly important for products 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
- Drop tests
- Adhesion checks
- Zipper or fastener checks
- Power-on checks
- Barcode scanning
- Carton drop tests
- Product weight checks
Testing methods and acceptance criteria should be defined before inspection whenever specific performance requirements apply.
Laboratory testing may still be required when compliance or performance cannot be adequately evaluated using factory-based inspection equipment.
Labeling and Barcode Verification
Labeling errors can cause receiving problems, retailer rejection, relabeling work, or compliance issues.
Inspectors may verify:
- Product labels
- Model numbers
- SKU information
- Barcodes
- Country-of-origin markings
- Warning labels
- Care labels
- Retail packaging information
- Required product markings
Barcode checks may also include scanning to verify readability and encoded information where required.
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 examine whether products are adequately protected from foreseeable handling during storage and transportation according to the defined packaging requirements.
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, finishing |
| Specifications | Model, material, color, construction, accessories |
| Measurements | Dimensions, weight, thickness and specified tolerances |
| Function | Operation, assembly and product-specific checks |
| On-Site Tests | Defined functional, performance or packaging tests |
| 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 product and purchase requirements. A generic checklist alone may not cover product-specific quality risks.
How Does the Pre-Shipment Inspection Process Work?
A structured PSI usually follows several stages from inspection preparation through reporting.
Step 1: Confirm Production Status
Before the inspection, the factory confirms that production has reached the required stage.
For a standard PSI, production should generally be complete and at least 80% packed.
Step 2: Verify Available Quantity
The inspector verifies the finished and packed quantities available at the factory.
This confirms whether the shipment is sufficiently complete for inspection and allows the correct lot size to be established for sampling.
Step 3: Select Random Samples
Products are selected from the available production lot according to the agreed sampling plan.
The inspector should select the samples from different cartons and locations within the available shipment.
This reduces the risk of evaluating only products specifically prepared by the factory for inspection.
Step 4: Inspect Workmanship
The selected samples are visually examined for workmanship and appearance defects.
Defects are recorded and classified according to their severity.
Step 5: Verify Specifications and Measurements
The inspector compares samples against the approved specifications and performs required measurements.
Results outside defined tolerances are documented in the inspection report.
Step 6: Perform Functional and On-Site Tests
Applicable tests are conducted according to the inspection checklist and product requirements.
The inspector records the test method, sample quantity, and results where applicable.
Step 7: Check Labels and Packaging
Labels, barcodes, retail packaging, export cartons, and shipping marks are verified against approved requirements.
Step 8: Issue the Inspection Report
After the inspection, the findings are compiled into a report.
A typical report includes:
- Product and order information
- Production status
- Quantity findings
- Sampling information
- Defect findings
- Defect photographs
- Measurement results
- On-site test results
- Labeling findings
- Packaging findings
- Inspection conclusion
The report gives the buyer documented evidence for reviewing shipment quality before release.
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.
AQL (Acceptance Quality Limit) is frequently used to establish 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 of defects identified
Sampling procedures are commonly 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 a certain percentage of defective products is automatically acceptable throughout the entire shipment. It provides a statistical sampling framework for determining whether an inspected lot meets the defined acceptance criteria.
Critical, Major and Minor Defects
Defects identified during pre-shipment inspection are commonly classified according to 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 commonly assigned very strict acceptance criteria, often with an acceptance number of zero where specified by the agreed sampling plan.
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 and buyer requirements.
What Happens If a Pre-Shipment Inspection Fails?
A failed PSI indicates that the inspected shipment did not meet one or more defined acceptance criteria at the time of inspection.
The inspection report should first be reviewed to determine why the result was unacceptable.
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 required corrective action depends on the findings.
The factory may need to:
- Identify the affected products or production lots.
- Determine the root cause of the problem.
- Repair, replace, sort, or rework affected goods.
- Correct labels or packaging where required.
- Complete an internal quality review.
- Arrange a reinspection when requested.
A failed inspection does not automatically determine whether goods can be shipped. The final shipment decision is made according to the buyer’s requirements and acceptance procedures.
What is Included in a Pre-Shipment Inspection Report?
The PSI inspection report is an important output of the inspection because it records what was actually observed at the factory.
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 is particularly useful because it allows the buyer to review identified defects and product condition remotely.
Pre-Shipment Inspection vs Container Loading Supervision
PSI and container loading supervision occur close to shipment, but they address different quality control needs.
| 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 products. Container Loading Supervision provides verification when the approved goods are being loaded for shipment.
When Should You Use Third-Party Pre-Shipment Inspection?
A third-party pre-shipment inspection can be useful when independent verification is required before shipment.
Common situations include:
- Working with a new supplier
- Placing a large production order
- Previous orders had quality problems
- Products have detailed workmanship requirements
- Manufacturing is located overseas
- Multiple SKUs are included in one shipment
- Packaging and labeling requirements are complex
- Retailer requirements must be verified
- Receiving defective goods would create significant rework or return costs
Independent inspection provides direct evidence of shipment condition without relying solely on the factory’s internal quality control records.
How to Prepare for a Pre-Shipment Inspection
Clear inspection requirements improve the usefulness of PSI results.
Before the inspection, provide relevant documents such as:
- 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 defined clearly enough for the inspector to determine whether observed results conform to requirements.
Pre-shipment inspection provides an independent assessment of finished goods before they leave the factory. A properly defined PSI can verify quantity, workmanship, specifications, dimensions, functionality, labeling, packaging, and other agreed requirements using representative samples from the production lot.
The inspection should be scheduled when production is complete and sufficient finished goods are packed for evaluation. Clear specifications, appropriate AQL criteria, product-specific checks, and a detailed inspection report give buyers the information required to evaluate shipment readiness and address identified quality issues before export.
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