Receiving Inspection

Legal Prerequisite

Acceptance of a shipment often implies that the buyer has found the goods to be in apparent good order. Under the PRC Civil Code, a buyer who fails to conduct a receiving inspection within a reasonable timeframe may lose the right to claim for visible defects. The inspection report acts as the primary evidence if the company needs to file a formal complaint or seek a refund from the vendor.

Testing Scope

Depth of the check varies based on the criticality of the component and the reliability of the supplier. For low-risk items, receiving inspection might only involve a visual check and a count. Complex parts or raw chemicals may require laboratory analysis to confirm the material composition matches the certificate of analysis.

This selective approach optimizes the use of inspection personnel and equipment.

Inventory Control

Materials that fail the initial check are moved to a designated quarantine area to prevent accidental use. Only after passing the receiving inspection is the stock moved to the active inventory and cleared for payment. This control protects the cash flow of the business by ensuring that funds are only released for compliant materials.