What Is Pre-Shipment Inspection (PSI)?
Pre-shipment inspection (PSI) is the final on-site quality check performed when production is 100% complete and at least 80% of the goods are packed into export cartons. An independent inspector draws a statistically sized sample (AQL) and checks it against the buyer's approved specification, then issues a report with a Pass, Conditional, or Fail decision. PSI is the most common inspection type in China sourcing and the mandatory final gate before the balance payment is released and the container is loaded.
What PSI Checks: The 10-Item Checklist
A thorough PSI covers ten check areas, each with a clear pass/fail criterion. If any area fails its AQL threshold, the lot fails inspection.
| Check Area | What's Inspected | Pass / Fail Criteria |
|---|---|---|
| 1. Quantity | Total cartons and inner-box count vs PI | Count matches ±0%; short-shipment = Fail |
| 2. Packaging | Carton condition, sealing, inner packing, polybags | No crushed/damaged cartons; correct packing method |
| 3. Labeling & marks | Shipping marks, barcodes, country of origin, language labels | 100% match approved artwork; any wrong label = major defect |
| 4. Appearance | Finish, color, print, stitching, cleanliness | Within AQL 2.5 major / 4.0 minor tolerance |
| 5. Dimensions & weight | Measured vs spec tolerances (e.g. ±1 mm, ±5 g) | Within spec tolerance; out-of-tolerance = major |
| 6. Function test | Buttons, switches, battery, voltage, moving parts | 100% of sampled units must pass function test |
| 7. Safety test | Sharp edges, small parts (toys), torque, drop, leakage | Any critical safety defect = Fail (AQL 0) |
| 8. Assembly & components | All parts present, correctly assembled, no missing pieces | Missing component = major defect |
| 9. Product spec & material | Material grade, color code, logo, artwork vs golden sample | Matches approved sample; deviation = major |
| 10. Carton drop test | Drop from defined height (e.g. 80 cm) on each face | Product and carton survive without damage |
AQL 2.5 Sampling in PSI
PSI uses the AQL (Acceptable Quality Limit) method under ISO 2859-1, almost always with AQL 0 for critical defects, AQL 2.5 for major, and AQL 4.0 for minor, under General Inspection Level II. The sample size depends on lot size. For example:
- Lot 500 units → sample 50, AQL 2.5 major Ac=3 / Re=4
- Lot 2,000 units → sample 125, AQL 2.5 major Ac=7 / Re=8
- Lot 5,000 units → sample 200, AQL 2.5 major Ac=10 / Re=11
For the full AQL table and worked math, see our AQL 2.5 inspection guide. For how defects are classified, see defect classification.
How to Book a PSI: 4 Steps
- Confirm readiness — ask the supplier for photos of packed cartons and the total carton count. PSI requires 100% produced and 80%+ packed.
- Book 1–3 days ahead — contact your inspector (third-party or agent). Book 5–7 days ahead in peak season (Oct–Dec) when inspectors are fully scheduled.
- Send the spec pack — proforma invoice (PI), approved golden sample, product spec sheet, defect list, and packaging/labeling artwork. Without these, the inspector can't judge pass/fail.
- Confirm the appointment — inspector name, factory address, date, and meeting point are confirmed 1 day before.
Inspection Day Procedure
A standard PSI day runs like this:
- Arrival & carton count (0.5–1 hr) — inspector arrives at the factory, counts total cartons vs PI, selects random cartons for sampling.
- Sample drawing (0.5 hr) — inspector randomly selects the AQL sample size from across the batch (not just the front cartons).
- Inspection (4–6 hrs) — checks all 10 areas, classifies each defect critical/major/minor, and takes photos of every defect.
- On-site summary (0.5 hr) — inspector verbally briefs the factory QC manager on findings.
- Same-day report (end of day) — written report with photos, defect counts, AQL comparison, and Pass/Conditional/Fail decision sent to the buyer.
PSI Report Sections
A usable PSI report has these sections:
- Order & supplier info, lot size, inspection date, sample size
- Quantity check result (cartons counted vs PI)
- Packaging & labeling check with photos
- Appearance, dimensions, and function test results
- Defect list with photos, each classified critical/major/minor
- AQL summary table: Ac/Re per defect class vs actual counts
- Final decision: Pass (all classes ≤ Ac), Conditional (minor issues, buyer decides), Fail (any class ≥ Re)
Worked Example: $20k Order PSI — Failure, Rework, Pass
A US Amazon FBA seller orders 5,000 wireless earbuds at $4.00/unit ($20,000 total), FOB Shenzhen. Payment terms are 50% deposit / 50% balance after PSI pass. The PSI finds 8 major defects (Bluetooth pairing failure) out of 200 samples. AQL 2.5 major for lot 5,000 (n=200) is Ac=10 / Re=11 — wait, that passes major. But the function test requires 100% pass, and 8 units failed pairing, so it's a Fail on function test criteria.
| Step | Action | Time | Cost |
|---|---|---|---|
| PSI 1 | 8 major defects (BT pairing fail) → Fail | Day 0 | $180 (agent QC) |
| Rework | Supplier replaces defective BT modules in affected units | 2 days | $0 (supplier cost) |
| Re-inspection | 0 major defects → Pass | Day 3 | $0 (billed to supplier) |
| Balance payment | Released on Pass report; goods shipped | Day 4 | — |
The 2-day rework delay cost the seller a potential Amazon stockout, but catching the pairing failure before shipping avoided a wave of returns and negative reviews that would have cost $10,000+ in lost rank and refunds.
Why PSI Matters
- Catch defects before paying the balance — with 50/50 terms, the deposit is already paid; PSI is your leverage to force rework before releasing the rest.
- Catch defects before shipping — reworking in China costs a fraction of reworking or returning goods after they arrive at your warehouse.
- Photo evidence for disputes — a PSI report with defect photos is the documentation you need if the supplier disputes the defect claim.
- Compliance & safety — PSI catches wrong labeling, missing certification marks, and safety defects that could trigger customs seizure or product recalls.
How Yeatru Runs PSI
Yeatru's QC team performs PSIs across Yiwu, Shenzhen, Guangzhou, and Ningbo. We provide:
- Same-day PDF report with photos of every defect and a clear Pass/Fail decision
- Default AQL 2.5 major / 4.0 minor / 0 critical under Level II
- Function and safety tests tailored to your product category
- Rework coordination and re-inspection billed to the supplier per contract
- Loading supervision add-on to confirm carton count and container sealing
Frequently Asked Questions
1. What is a pre-shipment inspection (PSI)?
A PSI is the final on-site quality check done when production is 100% complete and at least 80% of goods are packed. An independent inspector draws an AQL sample, checks quantity, packaging, labeling, appearance, dimensions, function, and safety, then issues a Pass/Conditional/Fail report before the balance payment and shipping.
2. When should I do a pre-shipment inspection?
Do PSI when the supplier confirms production is 100% finished and 80%+ of cartons are packed. Book 1–3 working days before the cargo-ready date, before you pay the balance and before the container loads. PSI should be done on every order over $2,000 and the first order from any new supplier.
3. How much does a pre-shipment inspection cost in China?
A standard PSI takes 1 man-day. Agent QC costs $80–$200/man-day, mid-tier firms $150–$300, and big-4 third-party (SGS, BV, TÜV, Intertek) $250–$500. Travel and out-of-pocket expenses may be added for remote factory locations.
4. Who pays for the pre-shipment inspection?
The buyer pays for the initial PSI. If it fails, the re-inspection after rework is normally paid by the supplier — this should be in the contract. Some suppliers offer "free PSI," but the report is only credible if run by an independent inspector, not the supplier's own staff.
5. What is AQL 2.5 in a pre-shipment inspection?
AQL 2.5 allows up to 2.5% major defects under ISO 2859-1. For lot 2,000 units under Level II, sample size is 125 and Ac=7 / Re=8 for major defects. Critical defects use AQL 0 (one fails the lot); minor defects use AQL 4.0.
6. What happens if a pre-shipment inspection fails?
A failed PSI means defect counts reached Re for any class. Standard handling: supplier reworks defective units at their cost and passes a re-inspection. Hold the balance payment until a Pass report. For critical (safety) defects, reject the lot rather than accept with a discount.
Conclusion
Pre-shipment inspection is the single most important quality gate in China sourcing — it is the last point at which you can catch defects before paying the balance and before the goods leave the factory. Run every PSI against AQL 2.5 major / 4.0 minor / 0 critical, require photo evidence for every defect, and never release the balance on a Fail report. The $80–$300 cost of a PSI is trivial compared to the cost of receiving a defective shipment at your warehouse. Contact Yeatru to book a PSI with same-day photo evidence for your next order.
