What is a Pre-Production Inspection (PPI)?

Independent inspection can be defined as a practice of employing private companies to check shipment details such as price, quantity and quality of goods ordered overseas.

Third party inspection services can be grouped under two main categories.

Previous Shipment Inspections, which are performed before the goods are shipped from the exporter's factory and Post Shipment Inspections, which are performed after the goods are shipped from the exporter's factory.

Inspections, which are performed before the goods are shipped from the exporter's factory are as follows:
Inspections, which are performed after the goods are shipped from the exporter's factory are as follows:

Today I would like to explain Pre-Production Inspection (PPI) in detail. After reading this article you should understand fundamental aspects of Pre-Production Inspection (PPI).

What is a pre-production inspection? How to define pre-production inspection?

Pre-production inspection is a type of third party inspection services, which is conducted in order to understand whether or not the quality of the raw materials used in the manufacturing process are in conformity with the specifications stated on the sales contract, is performed upon arrival of all raw materials to the exporter's factory but before production kicks in.

Why an importer may require a pre-production inspection?

An importer may require a pre-production inspection in order to make sure that only first quality raw materials will be used in the production stage. Additionally by the help of the pre-production inspection, importer can understand whether or not the exporting company follow initial production schedule and the critical manufacturing requirements which are dictated by the importer.

What are the benefits of a pre-production inspection?

With the help of the pre-production inspection, importer assures himself that only 1st quality raw materials will be used in the manufacturing phase.

Pre-production inspection allows importer to receive the preliminary production test results to match the samples received earlier.

Pre-production inspection eliminates any communication gap between exporter and importer to make sure that both parties understand each other.

How does a pre-production inspection work?

Pre-production inspection process may change from one audit company to another. But you can find below operational steps for a regular commercial pre-production inspection.
  • Importer or exporter, which will be called "applicant company" hereafter, applies to the independent inspection company in order to book a pre-production inspection.
  • The applicant company fills the forms either online or hard copy to get the price quotation for the inspection.
  • Once the inspection company receives the information supplied by the applicant company, prepares an offer outlining the inspection's borders.
  • If the offer is acceptable, then the applicant company pays for the inspection costs and books the inspection.
  • Inspection company get in touch with the exporter company in order to determine the inspection date.
  • Inspector company entrusts a qualified inspector for the inspection, who goes to the exporter's factory for the inspection.
  • Inspector checks the raw materials and collects sample of goods for the inspection if possible. 
  • Once the inspection is completed, inspector writes his reports. The report may indicate either raw materials, production planning and schedule are in conformity with the conditions stated on the sales contract or not.
What sort of shipments require pre-production inspection?

Pre-production inspection could be beneficial to importers when working with a new supplier, especially if importer and exporter enter into a big project contract concerning manufacturing of goods in big numbers within a short period of time.