Why should importers hire the inspection companies to inspect their commodities before transportation?
This article describes the application of the inspection companies for commercial purchases. The buyers order to the inspection companies for attending to the vendor shops and make inspections and witnesses the tests during construction processes. They will hire the third party inspection companies when they delivered their purchase order to the vendor.
The Europe is very industrialized region and world most well-known vendors and manufacturers are in this region. The Inspection sometimes is mandatory by importer country regulation. For example commodities exported from Europe and other countries to the Saudi Arabia and Kuwait need specific inspection, and certificate for custom clearance.
Some countries have mandatory regulation in the opening of the letter of credit conditions. They require the inspection certificate to be in the list of document that is in the clause 46.A. In this case these governments mandate the related specified goods in the letter of credit to be inspected before shipment. The inspection certificate must be issued by third party inspection agency and delivered to the Seller's bank.
If there is LC in place between a manufacturer and purchaser in the regulated country, then vendor is responsible to deliver inspection certificate to its bank for requesting its invoice value.
In this case the inspection company will do inspection in the manufacturer shop. The inspection body will send its inspection visit report to the buyer. If the result of inspection was satisfactory and inspection company received shipping document, then will issue the certificate of inspection and will submit to the manufacturer. This is widely used in Europe, as this region is major industrial goods exporter.
The purchaser specifies the inspection scope for inspection agency. Some buyers hire the inspection agency for pre-shipment inspection only and some other requesting more detail inspection to fulfill their required inspection in the vendor shop. In this case they hire inspection body for both vendor and pre-shipment inspections.
The inspection will be done by inspection company's inspector in different stage of construction. The inspector also supervises quality control system of the manufacturer. When all in process inspections and tests completed then a Pre-Shipment Inspection will be executed by inspection company.
The purchaser will submit the inspection and test plan to the vendor. Then vendor is responsible to notify third party inspection company to attend to the vendor shop and witness specified inspection and test.
Several inspection companies founded in Europe almost 150 years ago. Most of them own local offices, or joint venture companies in the other countries.
Majority of these inspection companies work specifically in the shop inspection field and some other work both in the shop and goods inspection field.
The inspection fee from one inspection agency to other is different, but one man-day inspection cost in eurpe is almost between 650 to 800 Euros. Some inspection companies also charge the mileage. The mileage is calculated from inspection company offices in the specified city to the inspection location. The mileage cost almost is something around 0.45 to 0.60 per kilometer.
The inspection companies' inspectors are mix some are agencies' full time employees and some others are freelancers. The best practice is that the agencies use both of them. The employing freelancers are not bad practice as inspection projects have very variation. It is not possible for inspection agencies to hire lots of full time employees and provide them enough jobs. So some parts of these jobs in these companies are done by freelancers.
The Europe is very industrialized region and world most well-known vendors and manufacturers are in this region. The Inspection sometimes is mandatory by importer country regulation. For example commodities exported from Europe and other countries to the Saudi Arabia and Kuwait need specific inspection, and certificate for custom clearance.
Some countries have mandatory regulation in the opening of the letter of credit conditions. They require the inspection certificate to be in the list of document that is in the clause 46.A. In this case these governments mandate the related specified goods in the letter of credit to be inspected before shipment. The inspection certificate must be issued by third party inspection agency and delivered to the Seller's bank.
If there is LC in place between a manufacturer and purchaser in the regulated country, then vendor is responsible to deliver inspection certificate to its bank for requesting its invoice value.
In this case the inspection company will do inspection in the manufacturer shop. The inspection body will send its inspection visit report to the buyer. If the result of inspection was satisfactory and inspection company received shipping document, then will issue the certificate of inspection and will submit to the manufacturer. This is widely used in Europe, as this region is major industrial goods exporter.
The purchaser specifies the inspection scope for inspection agency. Some buyers hire the inspection agency for pre-shipment inspection only and some other requesting more detail inspection to fulfill their required inspection in the vendor shop. In this case they hire inspection body for both vendor and pre-shipment inspections.
The inspection will be done by inspection company's inspector in different stage of construction. The inspector also supervises quality control system of the manufacturer. When all in process inspections and tests completed then a Pre-Shipment Inspection will be executed by inspection company.
The purchaser will submit the inspection and test plan to the vendor. Then vendor is responsible to notify third party inspection company to attend to the vendor shop and witness specified inspection and test.
Several inspection companies founded in Europe almost 150 years ago. Most of them own local offices, or joint venture companies in the other countries.
Majority of these inspection companies work specifically in the shop inspection field and some other work both in the shop and goods inspection field.
The inspection fee from one inspection agency to other is different, but one man-day inspection cost in eurpe is almost between 650 to 800 Euros. Some inspection companies also charge the mileage. The mileage is calculated from inspection company offices in the specified city to the inspection location. The mileage cost almost is something around 0.45 to 0.60 per kilometer.
The inspection companies' inspectors are mix some are agencies' full time employees and some others are freelancers. The best practice is that the agencies use both of them. The employing freelancers are not bad practice as inspection projects have very variation. It is not possible for inspection agencies to hire lots of full time employees and provide them enough jobs. So some parts of these jobs in these companies are done by freelancers.
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The Pre-purchase Industrial Inspection weblog provides you more information about this subject.
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