Your eyes and hands in India · Est. 2019 · Replies within one working day

What happens if the goods fail inspection?

The goods should not ship until you decide. Your options are to reject, ask for rework or replacement and re-inspection, or accept with an agreed allowance. The contract should set the rules.

· 3 min read · Creston & Co

If goods fail inspection, they should not be loaded until you decide what to do. The inspector reports the failures with photos and measurements, and you choose whether to reject, ask for rework or replacement, or accept with an agreed allowance.

A failed inspection is not a disaster. It is the check doing its job, before the goods leave the factory and become much harder to fix. The worst outcome is a lot that fails at your warehouse instead, with no one at the factory gate to stop it.

What the report should show

  • Which points of the specification failed, and by how much.
  • How many units, cartons or bags were checked, and how they were selected.
  • Photos of each defect, with a reference to the carton or lot.
  • Whether the problem looks isolated or runs through the whole lot.
  • Any test results, with the laboratory certificate if samples were sent.

Your options

The right response depends on the type of defect and how badly you need the goods. These are the usual choices.

  • Rework: the factory sorts, repacks, relabels or repairs the goods, followed by a second inspection.
  • Replacement: the factory makes a new lot, or replaces the failed part, followed by a second inspection.
  • Acceptance with an allowance: you take the goods as they are, with a price reduction or credit agreed in writing.
  • Rejection: you refuse the lot, and the contract decides what happens to any advance paid.

Who pays for the second inspection

This should be settled in the purchase contract before production starts. A common approach is that the factory bears the cost of re-inspection when the first one fails, because the failure is theirs. Write it down, along with the defect limits, the sampling method and the right to reject.

Without those terms, a failed inspection becomes a negotiation from scratch, often under time pressure with a vessel booked. With them, it is a process both sides already agreed, and the factory knows from the start that the inspection has consequences.

Do not let the deadline decide

The pressure to ship is the most common reason buyers accept a lot they should not. Moving a booking usually costs less than receiving a container you cannot sell. If you do accept failed goods, record what you accepted and why, so the next lot is not judged against a lower standard. Our guide on why quality drops after the first container shows how one accepted lot can reset expectations.

Keep counter-samples from both the failed and the corrected lot. Read what is a counter-sample for how they help later.

Next step

We inspect each lot against your specification, report failures with photos and take sealed counter-samples. You release the goods on our report. To set this up for your next order, book a free sourcing review.

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