Inspection Certificate

Posted in Operations and Supply Chain Terms, Total Reads: 710

Definition: Inspection Certificate

Inspection certificate refers to document that’s issued by an inspection company after checking the quality of goods, purchased by its client from suppliers. It’s an important method of quality control in the supply chain management. The goods can be inspected randomly at the time of loading, unloading or at the warehouses where the goods are received.

Inspection Certificate is also known as Pre-Inspection Certificate or PSI. It consists of 2 types:

1. Clean Report of Findings (CRF): It’s a compulsory certificate required by the importing country for cost, quality and quantity check. It’s generated by an international inspection agency that checks the goods at the country of origin (or at the time of loading).


2. Commercial Certificate of Inspection: It’s generated by a neutral inspection agency that checks the quality and quantity of the traded goods. It’s often pre-requisite for building long term relationship between buyers and suppliers.

The advantages of Inspection Certificates are as follows:

• Reduction in trade risk or fraud related to quality and quantity

• Buyer gets information like container number etc that prevents supplier from changing it after inspection is over

• Prevention of corruption in the buying country or organization

• Reduction in inherent frauds of e-commerce

It’s important to ask for Inspection Certificate as a mandatory document for bill payment of the supplier. It has to be made sure that these certificates are generated by well known inspection companies and a copy should be directly sent to the buyer and the bank that clears credit.


Hence, this concludes the definition of Inspection Certificate along with its overview.


Browse the definition and meaning of more terms similar to Inspection Certificate. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on: