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Inspection Certification: What Is An Inspection Certificate?

The Ins and Outs of Inspection Certification

By

When shipping high-value products or when you are dealing with a very conscientious customer, an inspection certificate might be requested. An inspection certificate provides proof that what you are shipping is, in fact, what the customer ordered, and is also of good quality. If a customer requests this document, agree to it -- but see that they cover the administrative and inspection fee. Also, ask them to recommend an independent inspection agency to perform the review at your end. If they don't have one, refer to your import/export dream team (e.g., banker, logistics expert, accountant and lawyer) for a suitable contact.

An inspection certificate can be furnished directly to a buyer, a buyer’s government or direct to a buyer’s bank. In the case of presenting to a buyer’s bank, that is precipitated by the request of a Letter of Credit payment transaction that spells out specifically an inspection certificate is required in order to fulfill payment obligations. Generally, a manufacturer furnishes the certificate or the report.

Case Study

I once had a customer who asked to have an inspection of their goods done prior to their leaving the factory, and requested that their close friend in the States conduct the inspection! When the goods were ready for dispatch, my customer's friend arrived at the plant and opened a few cartons here and there to insure that we were not shipping inferior merchandise. Then, he eyeballed all the cartons to see that they were marked on the outside as his friend had requested. Finding everything in order, he signed the inspection certificate and copies we had prepared in advance. In this case, the inspection didn't cost the customer a cent, everything was certified A-OK and we were all satisfied!

International Inspection Companies

A number of countries’ governments have ongoing relationships with international inspection companies to verify the quantity, quality, and price of shipments imported into their countries. Here are four such companies:

1. Bureau Veritas Group

(www.bureauveritas.com/)

2. Cotecna

(www.cotecna.com)

3. Intertek

(www.intertek.com/inspection/)

4. SGS

(www.us.sgs.com/)

The purpose of these companies is to assist when you need to be sure. For example, you might need to validate the price charged by an exporter to reflect the true value of the goods and to prevent less than quality goods from entering the country. Another reason is to deflect attempts to avoid the payment of customs duties.

Countries Requiring Pre-Shipment Inspections (PSIs)

Countries requesting or requiring pre-shipment inspection certificates (PSIs) vary year to year and are based on a shipment above a certain value. In some countries, however, an inspection certificate is required regardless of the value – be sure to inquire. Here is the current list of countries in alphabetical order:

Angola, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Comoros, Republic of Congo (Brazzaville), Democratic Republic of Congo (Kinshasa), Cote d’Ivoire, Ecuador, Ethiopia, Guinea, India, Indonesia, Iran, Kenya (under review), Kuwait, Liberia, Madagascar, Malawi, Mali, Mauritania, Mexico, Mozambique, Niger, Senegal, Sierra Leone, Togo and Uzbekistan.

Other Inspection Documents

If you are exporting an agricultural product, such as nuts, fruits, seeds, grains and vegetables, you will need a federal phytosanitary inspection certificate. This certificate is issued by the U.S. Department of Agriculture to satisfy import regulations for foreign countries. It indicates that a U.S. shipment has been inspected and is free from toxic plant and pest diseases.

In addition to the phytosanitary certificate, the USDA issues the Export Certificate for Processed Plant Products and the Certificate of Quality and Condition. If a processed plant product cannot be given a phytosanitary certificate but has been denied entry to one or more countries for lack of a health certification, an Export Certificate can be issued. Some products in this category are nuts in bulk that are salted, roasted, or vacuum-packed (in or out of their shells), soy-fortified products and meal extracted from seeds by solvent.

The Certificate of Quality and Condition is offered by the USDA's Processed Products Branch following the official inspection and grading of canned, frozen and dehydrated fruits and vegetables and related products. This certificate is available on a fee basis and can be tailored to meet your specific import/export needs.

What To Do If There Is a Certification Inspection Dispute

If a disagreement arises with the outcome of the inspection process, a resolution should be negotiated with the inspection company. In some instances, the exporter and inspection company must work together to resolve the issue.

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