Pre-shipment inspection is prevalent in international trade transactions as
foreign buyers/importers seek assurance, prior to shipment, that goods ordered
meet their requirements. A recognised international inspection company is
employed by the buyer to check the goods prior to shipment in terms of quality
and quantity and issue a report. This form of inspection is often made a
requirement of payment terms or contract. Pre-shipment inspection substantially
eliminates risk, reduces delays with early detection of deviations, saves
expenses and protects the valuable interests of the importer in their
international purchasing programme.
In several developing countries, particularly in Africa and South America,
governments have made pre-shipment inspection mandatory for all imports and
goods will not be customs cleared without a 'clean report of findings'. An
international inspection company is mandated in terms of a government contract
and period, to inspect all goods to be imported. In addition to quality and
quantity inspection, government contracts involve price analysis. The purpose
of government contract inspection is to safeguard national financial interests
(e.g. prevention of capital flight and commercial fraud as well as customs duty
evasion).
Companies that conduct government contract inspections include Bureau
Veritas, Intertek Testing Services, COTECNA Inspection S.A and
Société Générale de Surveillance S.A (SGS).
The International Federation of Inspection Agencies (IFIA) is a non-profit
making organisation established in 1982 and its members include leading
international inspection companies. The objectives of IFIA are to review and
improve methods, standards and safety procedures and rules and regulations used
and observed by members for the benefit of members and their clients. IFIA
promotes co-operation between inspection agencies, laboratories and allied
business throughout the world in order to:
- Develop and co-ordinate technical and professional standards, methods of
inspection and testing, and codes of practice.
- Improve efficiency and establish standard job descriptions and procedures.
- Develop methods of technical education and training
- Represent the profession among Government Authorities and Trade
Associations
- Promote uniform interpretation of international conventions on safety and
co-operate in their implementation.
Detailed information on the organisation, Code of Practice and a directory
of members and associate members are available from the federation.
Contracts are awarded to PSI companies for specific time periods and are
subject to renewal/change. Governments may appoint more than one agency to conduct PSI where each agency is allocated to a specific geographical region or the selection of agency may be left to the importer/exporters' choice.
It is essential to obtain further detail on pre-shipment inspection
requirements from the agency directly.
