Inspection and certificates in commodity trade

Independent inspection is what links payment to real goods. Here is who inspects, what is measured and which certificates a buyer should expect.

Last updated: October 20264 min readAndalucia Premium

In brief

Independent inspection companies such as SGS, Bureau Veritas or Intertek confirm quality and quantity at loading.

The contract defines who appoints the inspector, where inspection takes place and whose results are final.

A certificate is only as good as its verifiability: check it directly with the issuer.

What is independent inspection in commodity trading?

Independent inspection means that a surveyor not tied to buyer or seller samples, analyses and measures the goods and documents the results. It gives both parties and the banks an objective basis for payment.

Well-known international inspection companies include SGS, Bureau Veritas and Intertek; there are other recognised firms as well. Which company is used, and who pays for it, is agreed in the contract. Inspection usually takes place at the load port, sometimes also at discharge.

What does an inspection company check?

Typically quality (by sampling and laboratory analysis), quantity (by weighing, draft survey or tank measurement), packaging, marking and the condition of the vessel’s holds or tanks.

Dry bulk: sampling during loading, draft survey for quantity, hold cleanliness.
Liquids: shore tank and ship tank measurements, sampling and analysis against the specification.
Bagged or packed goods: counting, weighing, marking, condition of packaging.
Metals and steel: dimensions, grade, surface condition, comparison with mill certificates.

What is a certificate of analysis (COA)?

A certificate of analysis lists the measured properties of a product, such as content, impurities or fineness, and compares them with the specification. It can be issued by the producer or an independent laboratory.

For payment purposes, buyers and banks usually prefer a certificate of quality issued by the independent inspector at loading. A producer’s COA is useful information but does not replace independent inspection.

What is a certificate of origin (COO)?

A certificate of origin states the country in which the goods were produced. It is usually issued or certified by a chamber of commerce or another authorised body in the export country.

Origin matters for customs duties, trade agreements and sanctions. Non-preferential certificates prove origin in general; preferential proofs of origin, such as a EUR.1 movement certificate or an origin statement, can allow reduced duties under trade agreements. For sanctioned products, a documented origin is a precondition for any transaction.

What is the difference between certificates of quality and quantity?

The certificate of quality confirms that the goods meet the agreed specification. The certificate of quantity or weight confirms how much was loaded.

Document	Confirms	Typically issued by
Certificate of quality	Specification met	Independent inspector
Certificate of quantity / weight	Quantity loaded	Independent inspector
Certificate of analysis	Measured properties	Producer or laboratory
Certificate of origin	Country of production	Chamber of commerce or authority
Mill test certificate	Properties of steel products	Steel mill

Is the load-port or discharge-port inspection final?

That depends on the contract. Many bulk contracts make the load-port results final for quality and quantity, while others allow a discharge-port inspection to decide or to serve as a basis for claims.

The choice has consequences: if the load-port result is final, the buyer bears the risk of changes during the voyage. If discharge results count, the seller bears that risk. The clause should also cover what happens if the results of two surveyors differ, for example an umpire analysis by a third laboratory.

How can you check whether an inspection certificate is genuine?

By contacting the issuing inspection company directly through its official channels and asking it to confirm the certificate number, date and contents. Never rely on contact details printed on the certificate itself.

Forged certificates are a known instrument of fraud. Warning signs are certificates sent only as low-quality scans, references to inspections that took place before a vessel was nominated or results that match the specification suspiciously exactly. Several inspection companies offer verification services for their certificates.

Who pays for the inspection?

This is agreed in the contract. Often the seller pays for the load-port inspection and the buyer for any additional inspection it requests; other splits are possible.

Whatever the split, the contract should name the inspection company or the selection procedure, the place and time of inspection and the certificates to be issued. These certificates should match the documents required under the payment instrument.

Last updated: October 2026This page provides general information about trade practice. It is not legal, tax or investment advice.

FAQ

Frequently asked questions

Commodity trading questions, answered

What is a draft survey?

A draft survey determines the weight of a dry bulk cargo by reading the vessel’s draft before and after loading and correcting for ballast, fuel and other weights. It is a standard method for quantity in bulk shipments.

Does an inspection certificate guarantee the quality of the goods?

It documents the result of sampling and analysis at a specific time and place. It does not make the inspector liable for the contract, but it is the agreed evidence the parties rely on.

Can inspection take place at the factory?

Yes, pre-shipment inspection at the production site or warehouse is common, especially for packed goods and steel. For bulk cargoes, inspection during loading remains important.

What is a phytosanitary certificate?

A phytosanitary certificate is issued by the plant protection authority of the export country and confirms that plants or plant products, such as certain timber, meet the import country’s plant health requirements.

What is an EN 10204 3.1 certificate?

It is an inspection certificate for metallic products issued by the manufacturer’s inspection department, independent of production, confirming test results for the delivered batch. Type 3.2 additionally involves the purchaser’s or an authorised inspector.

Is SGS the only accepted inspection company?

No. SGS, Bureau Veritas and Intertek are well-known examples, but there are other recognised inspection companies. The parties and banks agree which one is acceptable.

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