Monday, February 4, 2013

Why Do We Need to Use Industrial Inspection Services?

By Nick Hoffee


This article discusses about second party and third party Industrial inspection activities that are done to certify purchased equipment or tool has the same quality and quantity that stated in their purchase order.

The commodity inspection and Pre-shipment inspection are the same in many cases.

It is necessary and mandatory that pre-shipment inspection to be done before shipment, but purchaser and vendor might decide to do commodity inspection when the commodity reached to the purchaser facility.

Some buyers send their own inspectors for their commodities' inspection, and others may hire the independent commodity inspection companies to carry out their inspections.

The goods inspector will review quality document, proforma invoice and purchase order before starting its job.

The TPI inspector provides the inspection report to the buyer when it carried out its physical inspection. If the goods had the same specification that mentioned in the purchase order, then the inspector can issue the Inspection release note.

When the manufacturer received the inspection release note, and then can make arrangement with the shipping company for transportation of goods. The seller must notify the inspector in advance to attend to its shop to witness the loading.

If the purchaser and seller transacted through a letter of credit, letter of credit, then an inspection certificate, issued by TPI commodity inspection agency must be provided to the seller's bank.

The certificate of inspection should be issued after issuance of bill of lading. The date of inspection certificate must be after date of bill of lading. It means the certificate of inspection must be issued when the commodity has been already shipped and vendor has been delivered related documents to the third party commodity inspection company. These documents are approved packing list, bill of lading and certificate of origin.

In T/T (Telegraphic) payment method, there is no need for inspection certificate. The buyer and seller might decide to have no inspection or if there is an inspection this is just for buyer assurance, not for bank requirement.

When the vendor and purchaser have worked together for years and trust each other, then may decide not to use from LC payment system and make transaction directly by them.

In the telegraphic payment system, the inspection visit report and release note might be enough to the purchaser. Normally the purchaser will not ask for the inspection certificate.

The buyer is the authority that determines the inspection scope. The buyer may order for pre-shipment inspection or request a detail inspection for manufacturing stages. It may order for inspection based an inspection and test plan. The pre-shipment inspection may not reveal some defects. The scope of pre-shipment inspection is only visual quality not quality.

The cost of inspection will be depending to the buyer decision. If the buyer order a stringent inspection and want to supervise some tests that are done in the manufacturing process, then the cost will be a little higher. However in the same time there would be less risk for having the equipment with the defects.

Some purchasers mix the commodity inspection with vendor inspection. They submit an inspection and test plan to their vendors and specify "hold points", "witness points" and "review points". In the hold points, the vendors must notify the inspector and cannot do the test without inspector attendance. In the witness points, the vendors notify but if inspectors did not attend in the shops, they can do the tests without attendance of inspectors. The review points mean the review of quality control documents. The inspectors can review these documents in the final inspection day.




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