Tt Inspecting Goods

8/3/2019 Tt Inspecting Goods

1/51

PREAMBLE

In the globalization economics, the exchange of products not only takes place in the

internal country but also expanding on over the world. The commercial process of each

country combines with the international integration process which create the impulse of

the world economics. Importing and exporting contribute the important role in the

development of the world economic system. The import and export activity make the

solid foundation to improve the internal strength of the country

In the import and export business, it always contains both the benefits and the risks or

loss. To dispute settlement related to the payment, loading and unloading, transporting,

and have the objective evidences to divide into the responsibility of all sides in theprocess to do the sale contact, the buyer or the both sides included buyer and seller must

indicate the inspecting organization which has been provided quality, reputable,

independent service. The inspecting organization will become the middleman between

the buyer and the seller to examine the good condition. The inspection certificate issued

by the organization is based to definite payment clause and distribute the responsibility of

all sides. The inspection is the critical service and support for the export and import

business.From the important scope of the inspection, our group have researched about the

topic carefully. The main contents of this topic are:

I. Common information about Inspection

II. Export and Import Goods Inspection Process

III. Some basic methods of Inspection

IV. Some examples related to the inspection of the specific goods.


2/51

I.COMMONINFORMATION ABOUT INSPECTION1. DefinitionAs the term 172 of 1997 Viet Nam commercial law: Inspection is defined as a

commercial action carried out by an inspection corporation in order to specify real stateof commodity.

As VCCI: Inspection is the examination and assessment for most subjects. Inspection

involves measuring, testing and evaluation criteria applied to validate certain technical

parameter related to specific expertise. Regular inspection results are compared with the

requirements and standards issued so as to build specific targets for inspection.

2. RolesofinspectionCommodity inspection takes an important part in both trading and government

management.

In commerce: commodity inspection certificate is an objective evidence to prove

accomplishment of the parties with their responsibilities.

y Exporter enterprises: basing on commodity inspection certificate, custom

departments can be easier to calculate import or export tax because there are

various tarriffthat make confuse which suitable tariff should be specified and

applied. Custom department often applies the highest tariff level. Whereas,

exporter enterprises often use a tariff level which is low as much as possible.

Subsequently, custom formalities often cost both time and expenditure. With

commodity inspection certificate, custom formality is carried out quickly and it

brings exporter enterprisesmore advantages

y Exporter:Commodity inspection is a process which determines if the quantity

and quality of commodity meets the criteria that is required in sale

contracts.Commodity inspection certificate is also a significant document for

exporter to attain payment.


3/51

y Importer: If commodities are inspected, importer feels free to receive goods

which are sufficient quantity and quality in compared with their requirement in the

contract.CIC is also an important document that must present when claim happens.

y

Transporter: Inspection determines criteria which transporters must to obey togain sufficient conditions for transporting commodities.

y Insurancecompany: inspection determines and measures risk and damage so that

they have fundamental to pay damages to customers.

y Bank: commodity inspection certificate is a basis to decide payment for exporter.

For state management: commodity inspection has significance to support

government in managing import- export.

y Custom department: inspection specifies relevant information with imported or

exported goods such as type, quality, quantity, price which are used to calculate

tariff exactly and give away situation of loss tariff.

y Inspection is effective in controlling the quality of imported goods and avoiding

importing commodity which is lack of quality and negatively impact on consumer,

environment and domestic market.

y Custom department inspects commodity of domestic enterprise prior to being

exported. So they can control over quality goods in order to avoid less quality

goods which will affect prestigious in long term.

3. ClassificationBase on subjects, nature, purpose and corporation, time and place, we have numerous

ways to classify inspection.

Baseoncontentand subjectinspected: inspection commodity and non- commodity:

Inspection commodity Inspection non-commodity

Inspect quality, quantity Inspect condition of the mode of transportations

Inspect package, marking Inspection transportation mode before renting.

Inspect source and origin Inspection in goods preservation

Inspect volume of liquid goods Inspection in environment, hygienic


4/51

Inspect safety standard for using Inspection transportation mode prior to being

repaired, demolished.

Baseonpurposeand corporationcarriesout,inspectionisclassified into

y

Trading inspection is the examination and assessment regarding to quantity,quality, package, marking, sanitary in conformity with the sale contract. Besides

it also inspects condition and capacity of mode of transportation in conformity

with contract of carriage; cause of risk and damage which is a document for

insurance company to compensate for customer.

y The inspection is carried out by inspected corporation which operates neutrally

and conducts as customers requirement.

y Mandatory inspection: it is applied for some special commodity which is regulatedin a list and carried out by stated corporation. However, the commodity inspection

certificate does not have value in claim between the buyer and seller. It only

satisfies the management of government.

y Inspection with the purpose of determination tariff and custom formalities as

custom departments requirement.

y Inspection quality ofspecial commodity

y Inspection machine, device, invested project which is regulated in the foreign

investment laws in Viet Nam. It is conducted by neutral corporation in order to

control the real value in investment.

Baseontimeand placeinspection,itincludes

y Inspection in production

y Inspection merchandise exchange

y Inspection commodity prior to being discharged

4. Someleadinginspectioncompaniesin VietNam4.1Vinacontrol4.1.1 In General


5/51

The Viet Nam Superintendence and Inspection Joint StockCompany Vinacontrol

have become the largest and the most reputable Inspection Company in Vietnam.

Vinacontrol specializes in providing inspection, analyzing and testing services and other

related services to requesting local and international clients.A

ccording ISO/IEC

17020standard, Vinacontrol is Independence Criteria for type A inspection body.

Vinacontrol's head office is located in Hanoi and a wide network of over 20

branches and sub-branches located at the big cities, main ports, trading centers and

frontier passes through out Viet Nam.

Vinacontrol has a team of over 600 qualified and professional managers, surveyors

and staffs.

Vinacontrols facilities have been continuous equiped to meet the client'srequirements of inspection, testing, analyzing and modernized which are fully capable of

inspection, testing and analyzing requirements of clients. There are 6 (six) laboratories

certified in conformity with the national standard (VILAS).

Vinacontrols Quality Management System are certified as follows:

- ISO 9001 certified by BVC (Bureau Veritas Certification).

- ISO/IEC 17020 certified by BoA (Bureau ofAccreditation)

- ISO/IEC 17025 certified by BoA (Bureau ofAccreditation).At the moment Vinacontrol is expanding to new services, such as: Property valuation

and enterprise consultancy and verification of construction project; Environtmental

consultancy and appraisal; Certification of product and quality management system.

These services creat new value as well as opportunity to meet the customers'

requirements. Our new services are highly appreciated and supported by clients.

Vinacontrol has set up, maintained and developed the relation co-operation; working

as sub-contractor/agent of leading internation inspection companies in China, Japan.

Korea, India, Iran, Asian countries, England, France, Switzerland, Russia, USA, Cuba...

Vinacontrol is member of Vietnam Chamber of Commerce and Industry (VCCI);

Vietnam Food Association (VFA); Vietnam Tea Association (VITAS); Vietnam Pepper

Association (VPA); Vietnam Cashew Association (VINACAS); The Grain and Feed


6/51

Trade Association (GAFTA), Vietnam Association for anti-countereiting and trade mark

protection (VATAP), Vietnam Steel Association (VSA)...

4.1.2 History24/10/1957: Decision No. 514/

B

TN-TCCB

dated 24/10/1957 on foundation ofVIETINSPECT including Inspection Department issued by The Minister ofMinistry of

Trade.

16/7/1974: Decision No. 513/BNgT-TCCB dated 16/7/1974 on splitting off

Inspection Department from VIETINSPECT and naming The Vietnam Superintendence

and Inspection company (Vinacontrol) issued by The Minister ofMinistry of Foreign

Trade.

12/11/1988: Decision No. 420/KTN-TCCB dated 12/11/1988 on merging TheVietnam Superintendence and Inspection company (Vinacontrol) and VIETINSPECT

into The Vietnam Superintendence and Inspection company (Vinacontrol) issued by The

Minister ofMinistry of Foreign Economic Relation.

2004 and 2005: Decisions No. 1758/2004/Q-BTM dated 29/11/2004 and No.

1525/QD-BTM dated 24/5/2005 on changing The Vietnam Superintendence and

Inspection company into The Vietnam Superintendence and Inspection Joint Stock

company (Vinacontrol) issued by The Minister ofMinistry of Trade.Since 1st June 2005, Vinacontrol has operated under Joint stock owned form, details

as follows:

- Name: The Vietnam Superintendence and Inspection Joint StockCompany

- Abbreviated address: VINACONTROL

- Address: No.54 Tran Nhan Tong Str., Nguyen Du Ward, Hai Ba Trung District,

Ha Noi City.

- Business registration certificate number: No.0103008113

- CharterCapital: 78,750,000,000 VND

- Legal representative: MrBui Duy Chinh Chairman

On 21/ 12/ 2006, Vinacontrol 's shares were officially listed on the Hanoi Stock

Exchange


7/51

- Code of Share: VNC

- Quantity of shares: 7,875,000

- Transaction registration value: 78,750,000,000 VND

Vinacontrol now has become the biggest and the most reputable inspection companyin Viet Nam.

4.2Bureau Veritas VietNam Ltd4.2.1 In GeneralBureau Veritas Vietnam is a professional service firm dedicated to Quality, Health &

Safety, Environment (QHSE), Management and Social Responsibility, in the field of

Aerospace, Automotive, Construction & Real Estate, Electrical & Eletronic, Food,

Government Services & International Trade, Industrial Equipment, Marine, Oil & Gas,Power & Utilities, Process Industries, Retail, Services, Transport & Infrastructures.

Bureau Veritas Vietnam delivers a comprehensive range of services including inspection,

testing, audit, certification, ship classification and related assistance, training, outsourcing

and advisory services. It is a full subsidiary ofBureau Veritas S.A, a company set up in

1828, and has now a network that covers 140 countries , includes more than 900 offices

and laboratories with over 40,000 skilled employees servicing 370,000 customers accross

a wide range of end markets.Created in 1828, Bureau Veritas is a world leader in conformity assessment and

certification services.

We help our clients to improve their performances by offering servicesand innovative

solutions in order to ensure that their products,infrastructures and processes meet

standards and regulations in terms of quality, health and safety, environmental protection

and socialresponsibility.

Bureau Veritas is recognized and accredited by major national and international

organizations.

4.2.2HistoryofBureau Veritas

Founded in Antwerp in 1828, current Belgium, the Information Office forMaritime

Insurance had a simple mission: to give shipping underwriters up-to-date information on


8/51

premiums in use at commercial centers and provide precise information on the state of

ships and equipment.

In 1829, the company was renamed Bureau Veritas, adopted the emblem of Truth as

its official logo and edited its first Register of some 10,000 ships. In 1833 the head officetransferred from Antwerp to Paris, where a branch office was set up in 1830.

The company went from strength to strength, expanding into new areas such as Control

ofMaterials, for iron and steel inspection in the burgeoning railway industry, as well as

inspecting factory equipment. In 1922, the French government entrusted Bureau Veritas

with the official control of airworthiness certificates for civil aircraft. Nor was the

automobile industry neglected: Bureau Veritas created a service to check buses, coaches

and trucks in 1927.y TheFoundationofthecompany, 1828

In the winter of 1821, violent storms raged across Europe causing some 2,000

shipwrecks and 20,000 deaths. The situation was disastrous for insurance companies.

Most of them went bankrupt, and for those that survived the competition in coming years

from newcomers in the market was particularly fierce. It was during this critical period

that two underwriters, Alexandre Delehaye and Louis van den Broek, and an insurance

broker, Auguste Morel, established the Bureau de Renseignements pour les Assurances

Maritimes (Information Office forMaritime Insurance).

Founded in Antwerp (Belgium) in June 1828, the company had a simple mission: to

keep underwriters up to date with the various premiums in use at different commercial

centers and to provide all the necessary information for determining the level of

confidence in ships and equipment.

In 1829, the company was renamed Bureau Veritas, the first Register was edited -

which included 10,000 ships - and an emblem for Truth was adopted as the company

insignia.

y 1830-1980

In 1830 a branch office was created in Paris. But by 1833 activity had expanded so

much that the head office was transferred to the French capital.


9/51

The Bureau's presence did not go unnoticed in other fields. The company was quoted

in three Jules Verne novels:

- 20,000 Leagues under the Sea (1869)

- TheM

ysterious Island (1874)- The Survivors of the Chancellor (1875).

and the name Bureau Veritas entered both the French dictionary Larousse and

Webster's Revised Unabridged Dictionary (1913).

With the expansion of the Industrial Revolution, Bureau Veritas broadened its range

of services. The introduction of iron and steel into ship building had made materials

inspection at production sites crucial. In 1910 a new service was created, "Control of

Materials". Its purpose was to examine all the materials used in everything fromindustrial equipment, to diesel motors, locomotives and the like, as well as the very

factories themselves.

Then in 1922, the French government entrusted Bureau Veritas with the official

control of airworthiness certificates for civil aircrafts. (The company's substantial

experience acquired in the maritime field had already proved most valuable.) The new

Aeronautical Service established thorough procedures based on periodical surveys with

reference to specific rules.Similarly, requests from insurance companies for periodical technical surveys of

buses, coaches and trucks in France led to the creation of the Automobile Service in

1927.

With the increasing number of accidents during the construction boom that followed

the First World War, insurers realized they could no longer cover the risks unless there

were pre-existing controls in place. Again Bureau Veritas responded to the market, and in

1929 it established the "Control Service forBuildings & Civil Engineering".

By 1932 Bureau Veritas had established its own laboratories at Levallois-Perret near

Paris for metallurgical and chemical analysis, and the testing of building materials.

y 1980-1990


10/51

Between 1980 and 1990 Bureau Veritas set up a number of new subsidiaries in

response to specific needs.

Bivac - In 1984 the government of Nigeria approached Bureau Veritas to deliver pre-

shipment inspection of imports. It was a brand new business venture for the company,and one that it would quickly master and take to other countries. A global network was

soon established to work with governments across the globe.

BVQI - Now Bureau Veritas Certification - By 1988, quality imperatives and ISO

certification had became key issues for many companies. With the growing need

for independent third party systems certification, Bureau Veritas was in a strong position

to respond.

Veritas Auto - 1990 saw the creation of a major subsidiary to handle the periodicalinspection of motor vehicles. This activity was ceded a few years later.

y 1990-2000

In 1995, two new corporate shareholders, CGIP and Poincar Investissement, injected

fresh impetus into Bureau Veritas activities. At the same time, the global economic

environment was evolving ever faster. The Asian economic boom and the emergence of

strong economies in Russia and Eastern Europe were transforming the market. Moreover,

in Europe and North America, a growing focus on quality, health, safety and

environmental issues arrived hand in hand with a proliferation of new regulations. Fast

developing countries started aligning their regulations with those in the USA and Europe.

Standards began to move up the supply chain as developed economies demanded that

their suppliers in other parts of the world comply to the same norms.

In this challenging environment, Bureau Veritas established a set of priorities based

on external growth that helped strengthen its position in the more mature economies.

MajorAcquisitions:

1996 was an important year with a significant merger in France: Bureau Veritas

acquired 100 per cent of CEP capital and became the French leader in conformity

assessment of building construction.


11/51

Shortly after, the acquisition of two well-established US firms with testing labs in

Asia - ACTS (Acts Testing Labs) in 1998, and MTL (Merchandise Testing Laboratories)

in 2001 added a new core competence to the company's portfolio: its position was now

firmly strenghtened in consumer products testing. The C

onsumer Products ServicesDivision" is now one of the world leading quality assurance providers for the consumer

product manufacturers and retailers.

y Buildingsolid growth platforms,2000onwards

In the past few years, Bureau Veritas has streamlined its organization to enable a

better market focus and keep a strong growth momentum. The Group is now structured

along 8 global businesses :

- Marine- Industry

- Inspection and In-Service Verification

- Construction

- Certification

- Commodities

- Consumer Product Services

- Government Services and International Trade

Bureau Veritas has achieved a strong competitive edge in its 8 global businesses,

with:

- All 8 global businesses positioned on markets with high potential and significant

growth.

- Worldwide leadership positions in each one of these businesses.

- The ability to leverage an efficient and dense international network.

- An in-depth technical expertise recognized by relevant authorities and accreditation

bodies.

- A solid track record of growth through acquisitions.


12/51

The flow of acquisitions has been particularly active in the past 5 years, enabling the

emergence of solid growth platforms forBureau Veritas, in 3 countries in particular: The

United States ofAmerica, The United Kingdom, Australia.

4.3SGS VietNam Ltd

4.3.1IngeneralSGS is the worlds leading inspection, verification, testing and certification company.

Recognized as the global benchmark for quality and integrity, we employ more than

67,000 people and operate a network of over 1,250 offices and laboratories around the

world.

SGS has been providing quality service, reputation, bringing international

independent in Vietnam in 1989.These services to support entrepreneurs Vietnam to international markets and increase

their reputation as a supplier in the world market and ensure that the products of

international buyers paid to meet the requirements of customers.

In September 1997, SGS Vietnam became independent appraisal company first

International licensed to establish the company 100% foreign investment in Vietnam.

Currently, SGS has over 220 professional staff and active work in offices across the

territory of Vietnam, providing the skills mastered in high levels in the field ofInspection, Certification, Testing by the use of laboratory equipment most sophisticated

available in Vietnam.

Customer satisfaction is the main standard of the SGS Group. They guarantee

satisfaction based on the development of good relationships with customers, allows them

to anticipate and meet the changing needs quickly when changes in the global market

today .

They are constantly looking beyond customers and societys expectations in order to

deliver market leading services wherever they are needed. As the leader in providing

specialized business solutions that improve quality, safety and productivity and reduce

risk, we help customers navigate an increasingly regulated world. Their independent


13/51

services add significant value to our customers operations and ensure business

sustainability.

They aim to be the most competitive and the most productive service organization in

the world. Our core competencies in inspection, verification, testing and certification arebeing continuously improved to be best-in-class. They are at the heart of what we are.

Our chosen markets will be solely determined by our ability to be the most competitive

and to consistently deliver unequalled service to our customers all over the world.

4.3.2 HistoryofSGSEstablished in 1878, the company started by offering agricultural inspection services

to grain traders in Europe. From those early beginnings, we grew in size and scope as our

agricultural inspection services spread around the world. On 19 July 1919, the company

adopted the name of Socit Gnrale de Surveillance (today, known as SGS). During the

mid-20th century, we began to diversify and started offering inspection, testing and

verification services across a variety of sectors, including industrial, minerals and oil, gas

and chemicals, among others. In 1981, the company went public.

The current structure of SGS, consisting of 10 business segments operating across 10

geographical regions, was formed in 2001. From our beginnings in 1878 as a graininspection house, we have steadily grown into our role as the industry leader. We have

done this through continual improvement and innovation and through supporting our

customers operations by reducing risk and improving productivity.

They help customers all over the world operate in a more sustainable manner by

improving quality and productivity, reducing risk, verifying compliance, and increasing

speed to market. Their range of services cover all industry sectors and touch the products

and services that consumers around the world rely on countless times in their everydaylives. From the energy that powers the cars we drive and the homes they live in, from the

food on our plates to the clothes on our back, from the quality of the air we breathe to the

safety of the pharmaceuticals we take, SGS provides independent services that make a


14/51

difference in peoples lives. At the end of the day, their value lies in what their services

make possible for our customers and, ultimately, for their consumers.

4.4ITS VietNam Ltd4.4.1

Ingeneral

ITS Viet Nam ( Intertek Testing, Inspection and Consulting Services) provides

laboratory testing, laboratory outsourcing, consulting, cargo inspection and certification

services for clients in a wide range of industries on a global basis. Industrial and

commercial organizations choose Intertek for quality, professionalism, performance and

solutions. Intertek is the world's largest product testing, inspection and certification

partner providing manufacturers and retailers with a wide range of support and expertise.

For more than 126 years, companies around the world have depended on Intertek toensure the quality and safety of their products, processes and systems.

We go beyond testing, inspecting and certifying products; we help customers improve

performance, gain efficiencies in manufacturing and logistics, overcome market

constraints, and reduce risk. Weve earned a reputation for helping our customers

increase the value of their products, gain competitive advantage, and develop trusted

brands. Through our services we help our clients to minimise the adverse health and

environmental impact of their products and processes for the benefit of society as awhole.

Intertek is the industry leader with more than 30,000 people in 1,000 locations in over

100 countries. Whether your business is local or global, we can ensure your products

meet quality, health, environmental, safety, and social accountability standards for

virtually any market around the world. We hold extensive global accreditations,

recognitions, and agreements, and our knowledge of and expertise in overcoming

regulatory, market, and supply chain hurdles is unrivaled.

4.4.2 HistoryThe Intertek story starts at the inception of the modern testing industry. The history of

Intertek spans 126 years, and evolves from the combined growth of a number of

innovative companies.


15/51

y 1880 1900

Mr. Caleb Brett founds a marine surveying business in the United Kingdom to offer

independent testing and certification of ships' cargoes (1885).

M

r.M

ilton Hersey establishes a chemical testing laboratory inM

ontreal, Quebec,pioneering the idea of independent testing laboratories (1888).

Mr. Thomas Edison establishes the Lamp Testing Bureau of his Edison Electric

Illuminating Company in America, the origin of the world's electric light industry (1896).

The Lamp Testing Bureau is later renamed 'Electrical Testing Laboratories,' and later

shortened to 'ETL.'

It grows to provide testing to General Electric and other industries being created by

new invention at the time, such as air-conditioning, over the next 40 years.y 1900-1940

SEMKO is founded in Sweden to provide Swedish electrical and electronic product

safety testing (1925).

SEMKO registers the 'S-Mark.' It becomes a product testing organisation accredited by

the Swedish government for its mandatory certification.

It further expands to provide certifications for products in wider Nordic markets, and

the international electrical and electronic industries over the next 40 years.

Mr. Chas Warnock forms the Chas WarnockCompany in Montreal, Canada to inspect

steel products (1927).

y 1940-1980

Milton Hersey and Chas Warnock merge their companies to create 'Warnock Hersey',

one of the largest testing and inspection entities in Canada (1954). The company expands

into minerals, lumber testing and the US market.

Inchcape, a diverse international group at the time enters the testing industry by

establishing 'Labtest' Hong Kong to serve the internal needs of the Dodwell companies, a

multinational corporation acquired by Inchcape (1973).

Labtest originally focuses on textile testing, and later broadens across other consumer

goods. It is the first commercial consumer goods testing facility in Hong Kong.


16/51

Labtest expands internationally, extending its business in the United States (1975) and

establishing labs in the Philippines (1979), Taiwan (1982), New York city (1983),

Singapore (1984), Thailand (1985) and the UK (1987) and China (1989).

Inchcape acquires multiple testing and inspection companies, ranging from petroleum,petrochemical, textiles, to electronics and minerals testing (1975- 1980)

y 1980-2000

Inchcape reorganises. It forms a specific testing business stream, 'Inchcape Testing

Services' (1987), including Labtest and its other acquisitions in the testing, inspection and

certification area.

Inchcape acquires the Caleb Brett group of companies, and the government trade and

inspection services businesses in the UK ('Foreign Trade Standards') and the US (IntertekTesting Services and Intertek Services International) (1984-87).

Labtest acquires the product safety consulting business RAM (Risk Analysis &

Management). RAM supports clients such as McDonalds and their toy safety

programme (1988).

Inchcape acquires ETL Testing Laboratories (1988).

Inchcape continues its acquisitive path, buying Warnock Hersey in North America

(1992) and SEMKO in Sweden (1994), and other testing companies. It amasses a range

of accreditations and registrations needed to provide certification, inspection and testing

services across various industries including automotive, aerospace, electronic and

consumer goods.

Inchcape's Testing Services division is bought as part of a management buy-out by

Charterhouse Development Capital, a global investment company (1996).

The company is renamed 'Intertek Testing Services,' forming the present-day Intertek.

Richard Nelson, the existing CEO of Inchcape Testing Services, becomes CEO of

Intertek.

y 2000 Present

Intertek lists on the London Stock Exchange on 29 May 2002, becoming Intertek

Group plc.


17/51

It lists with a share price of 4, market capitalisation of 614m, and joining the FTSE

250 in the Support Services sector.

Intertek's stock symbol is ITRK.

Upon listing, Intertek had around 10,500 employees and around 750 laboratories andoffices worldwide and generated around 450m revenue per annum.

Intertek continues to expand by acquiring complementary companies in the testing,

inspection and certification arena, with the wider focus on providing quality and safety

services across a wide range of industries (2000 to present).

Intertek expands its own services and operations in growing areas such as supply-chain

management and ethical sourcing services, industrial asset inspection, food,

pharmaceutical renewable energies and bio-fuels, solar and wind-powered productservices.

It commences major laboratory outsourcing contracts with companies, including BP,

Kodak, DSM, Unilever, ICI, Sabic, Volkswagen and Lilly.

Richard Nelson, CEO of 20 years, retires. Dr. Wolfhart Hauser is appointed CEO in

2005.

Intertek internal business units were aligned around customers' industries into four

core divisions in 2006.In January 2011, we reorganised our operational structure to further improve the

alignment of our business lines with those of our customers, and renamed certain

divisions to better describe their core activities.

Oil, Chemical & Agri is renamed Commodities, and incorporates Minerals; Analytical

Services is renamed Chemicals & Pharmaceuticals, and incorporates Health &

Environmental; Industrial Services is renamed Industry & Assurance, and incorporates

Food, Agri, and Upstream Services.

Intertek's share price on the London Stock Exchange exceeds the 10-mark for the first

time in June 2007; and 2011 marked the first time that the share price exceeded the 20-

mark.


18/51

Intertek's annual revenue exceeds GBP 1 billion in 2008, reporting total revenue of

1,003.5k for the full year.

Intertek enters the FTSE 100 for the first time in 2009.

InM

ay 2011, Intertek completed its acquisition ofM

oody International for 450million. As a result, the number of Intertek employees reaches 30,000.

On 31 December 2010, Intertek had a market capitalisation of 2.9 billion, and on 5

August 2011, Intertek reached market capitalisation of 3 billion.


19/51

II.EXPORT ANDIMPORT GOODSINSPECTION PROCESS

1.Inspectionprocessforexportinggoods

1.1ForexporterWhen signing the import and export contract or opening letter of credit, the buyer or

both sides often appoint one independent inspecting organization which is reliable to test

the goods before exporting. Inspecting certificate of this organization is the basis of

payment and solving dispute which can happen after that. All costs are paid by the seller.

The exporter must perform the following formalities:

- Filling in the inspection order and appending a seal before sending it to the inspecting

organization

- Attaching contract or L/C in which specifies the scope of inspection, sampling

method, inspection criteria and norms for inspection

- Determining an exact appointment and contact with organization staff for inspection

- Negotiating about the inspection fees

Theexportersobligations

- The seller has responsibility to layout the equipment, employee and necessary

material to serve the inspection on the spot. If the inspecting organization does all

preparation instead of the exporter, all costs will add in the inspection fees which are

agreed.- After signing the bill of lading (B/L) or airway bill (AWB) with the shipper, the

exporter should supply one copied B/L orAWB for inspecting organization in order

to get the inspection certificate.

1.2Fortheinspectionorganization

Exporter Inspectingorganization

Importer


20/51

The inspecting organization must do the following steps:

Step 1: Recievingtheinspectingorder

All required documents

-

Inspection order according to the sample of inspecting organization- Inspection order of business organization, foreign individuals.

- Inspection order of shipper, airways, other transportation owner

- Inspection order of international colleagues

- Inspection order of custom, public security, court, the other organization relating the

state

The way to receive the request

-

Direct- By fax

- By email ( just for foreign customer)

- By telephone (just for closed customer or urgent emergency. However the person

receiving the phone has to take the responsibility and finish all formalities, then write

all content in inspection order by telephone record1, signing and marking the

ordinal number in the inspection order note.

Step2: Testingtheinspectionorderand attached documents

- Test about aministration formalities:

y Inspection order must contain the date when issues the order, name and signature of

requester.

y If the requester is business unit, the inspection order must contain legal entity name,

competent persons name and the seal.

y If the requester is individual, the inspection order must contain the requesters name,

the address, ID number.

- Defining the customers request

y Type of the inspection

1T ghi chp gim nh bng in thoi


21/51

y Date and address of inspection

y Date issued the inspection certificate

y The number of inspection certificate is issued in Vietnamese or foreign language.

- The method of payment, the number account in the bank (if necessary)

- Checking the attached documents

The attached documents have to be sufficient and united about data and material. They

have to be suitable with the list which is indicated in inspection order about name of

goods, kinds of goods, marking, name of ship, bill of lading and in accordance with

the time among those documents

- Checking with the witness of contract or the sample of good (if have).

Step3: Evaluate the technicalcapability,and determining theconditions tocarry

outtheinspection.

In all the previous steps, if it hapens any problem, the inspecting organization has to

discuss directly with the exporter. Then continue to discuss about some factors.

y Employee: professional requirement, the amount of inspectors, collaborators (if

necessary)

y Equipment: kinds of, quantity of instrument is used on the spot

y Other materials

y Cost (transportation, accommodation,..)

y The documents

y The method for inspection.

Step4:Offeringthecostforinspection

If the customer accepts the offered cost, all following the steps will be carried out.

Step 5: Acceptingtheinspectionorderorrefusinginspection

If the inspecting organization does not have capability or the customer does not

supply sufficient documents, papers, the essential information, the organization will


22/51

decide to refuse inspection. If they accept the inspection requirement, they should

confirm that. Two ways for confirming:

y Confirming the inspection requirement by the document

y Signing in the left corner of inspection orderStep 6:Conductingtheinspection

Inspecting organization has responsibitity to lay out professtional and capable

inspectors to carry out the task and conduct adequately all terms of inspection according

to the method and standard regulation.

In common, the inspection of export good will be conducted with three steps:

a. The inspection will be happened officially while the goods seem to be enough

amount, quantity, and get all quality regulations, then chose sample and send to test.

- Checking the condition of arrangement and preservation goods in the warehouse: the

goods have to arrange according to each area which help the inspectors easy to

inventory the quantity and get sample.

- Checking package: the condition of package, marking, the manner of packing.

- Checking goods: only do the test with the whole and dry pack. For equipment, we

have to check the condition of preserving machines, quality target through running themachine.

- Sampling

y In the sampling process, if inspectors discover that the same kind of goods have a lot

of different specification, they should get each sample for every specification, besides

determining the scale of each kind. After the sampling, the inspectors have to inform

the quantity of sample by the sampling note and put in that pack, then writing invoice

and send for the requester.

y Take photos for goods (if necessary).

b. Making the sample and analyst the sample


23/51

y After getting the sufficient quantity of sample, inspectors will use the necessary

methods to make the representative sample for pack. The representative sample is

divided into:

Saving sample Trial sample

Sample for the buyer or the seller ( if necessary)

y Analysting the sample: when sending the sample for checking must attach the

inspection order. The inspection order should be divided into two copies: the first

copy attach to the sample, the second copy have to contain the signature of the

inspection department. It is saved in the inspection file.

c. Handling the result

When having the result, inspectors need to compare with the contract, L/C or sample

to have comment on the compliance of the checking result. If it has any the

suspiciousness about the result, inspectors must conduct the test again from the first step,

if necessary getting sample again. Especially, for the exported goods, if the result is not

suitable, inspectors have to inform to requester in order to find out the solution.

y

Supervising the loading process from the warehouse to the transportation by theseaway, airway, railway

y Supervising the loading to the transportation. In the case of transporting good by

container is loading by the owners arrangement, counting and affixing the seal tin

step 2 and step 3 will be done the same time

y Note: if the customer has any supplement or changing the content of inspection, he

should notify through document.

Step 7: Approvingand grantingtheinspectioncertificate

- The inspection certificate must be examined and reviewed carefully before issued, in

order to ensure all requirements of customer.


24/51

- The inspection certificate must contain the signature of inspector and the authorized

representative of the inspection organization, adding the name of them.

- The inspecting organization issues the inspecting certification exactly, faithfully and

in time for exporter with the content in conformity with contract.y Payment according to L/C, D/A, TTR

y Notifying to the buyer that the inspection process has been finished.

y Notifying to the carrier, insurer about all information in detail about goods and

prepare a suitable solution for carrying.

Step 8:Sendingtheinspectioncertificateforexporterand handlingthecomplaint (if

any)

When having any complaint, the inspecting organization ought to examine all file and

the process of inspection in order to oppose to the claim

Step 9:Savingtheinspectionfile.

- The inspection file has to include all following document:

- The inspection order.

- The inspection certificate

-The paper recording the evolutive inspection

- Other related documents

- The time to save the inspection file: 3 years. Especialy to the inspection file have any

complaint in the inspecting process, they must be saved 5 years.

2. Inspectionprocessforimportinggoods:2.1Forimporter- When importing good, if discovering any problems about the amount, quantity,

package, quality or the loss, the importer must set the appealing letter and

immediately sending to the related organization to get the claim right.

y Claiming the seller: about the lack of the amount of goods, package, and poor quality,

wrong in the name of good, marking, and brand


25/51

y Claiming the insurer: the cargoes are lost but they are insured.

y Claiming to the forwarder at the port of unloading: the loss of cargo is not under limit

of insurance but the importer can prove the fault of shipper or the forwarder.

-The importer should invite one neutralist and independent organization for inspectingthe good and getting the inspection certificate to definite the claim, and conpensation.

- The importer should pay attention that:

y Inviting the inspecting organization indicated in the import and export contract or in

law. It is the prestige organization.

y The inspection can be conducted by one neutralist organization or many inspecting

organizations which represent for the buyer, the seller, insurer, or shipper.

- The formilities of inspecting requirement:

y Sending the inspecting order or signging the long-term inspecting contract when has

the large amount of cargo or many voyages.

y Attaching the commercial contract, packing list, invoice, or quality certificate and

drawing-board document (with the machine, equipment)

y Appointing date, address for inspection

y Deal with cost, condition and content which should be examined in detail.

2.2. Totheinspectingorganization

Step 1: Recevingtheinspectionrequirement

Step2: Testingtheinspectionorderand attached documents

Step3: Evaluatingthetechnicalcapability,and determiningtheconditionstocarry

outtheinspection.

Step 4: Offering the cost of inspecting (if the importer accepts the cost level, thefollowing steps will be continued)

Step 5: Acceptingtheinspectionorderorrefusinginspection

Step 6:Conductingtheinspection


26/51

According to the specific request of the importer, the inspection organization will

conduct the following category:

- Checking the number of goods, the quantity, quality, package, marking, brand, the

good condition.- Checking the loss for complaining to the exporter, insurance agent, the carrier or

applying the tax deduction

- Checking the value of imported equipment, and taking over the machinery and

equipment system which are bought for investing import.

Step 7: Approvingand grantingtheinspectioncertificate

After finishing the inspecting obligation, the inspecting organization will issue the

inspecting certificate for importer so that the importer can make customs clearance or useit like an important certificate in the complaining file which is sent for related sides. The

complaining file includes:

y Inspection certificate

y The complaining letter

y The origin documents for importing goods ( B/L, packing list, invoice,)

y The provable documents: Cor, Roroc, survey record,

y The claim letter indicates clearly about the cost, the manner for compensation (paying

the banking account, sending the extra goods).

y Other records.

Step 8:Sendingtheinspectioncertificateforimporterand handlingthecomplaint

(ifany)

Step 9:Savingtheinspectionfile.


27/51

III.SOME BASIC METHODSOFINSPECTION

1. Method ofinspectinggoodsspecificationand quality1.1Definition

Inspecting goods specification and quality is checking the norms or the figures about

specification, quality of commodities according to articles that were written in contract,

L/C or customers request.

Inspected goods are the volume of commodities having the same specification and

quality, same quality inspection certificate and are appointed by clients request.

1.2ProcessPreparation

Step 1:Checking Receiving inspection order procedure

Step 2: Examining enclosed documents: Contract, L/C, Packing list, technical

document (if product is machines or equipments: map, technical drawing, instruction

manual), the figures, checking method, expected date for loading on board (exported

goods), expiry date of claiming (imported goods).

Step 3:Anticipative tasks: planning tasks must be done on the location, calculating

the quantity of samples must be taken for inspecting, predicting difficulties and way tosolve problems.

Step 4: Preparing papers, equipments, bags and preserve machines samples, camera,

etc.

Worksonthescene

Step 1:Checking arrangement and preservation of goods at the warehouse: Goods

must be arranged by sections or areas for examining, counting quantity, taking samples

conveniently.Step 2:Checking packings: status, code, packing method, etc.

Step 3:Checking goods: only examining undamaged and dry commodities.Machines,

equipments: checking quality norms by operating them.

Step 4: Taking samples:


28/51

In the process of taking samples: if discovering the qualitys differences in same one

kind of goods, we have to take samples according to each kind of qualities, and specify

each types rate. After taking samples, we have to notify the numbers of samples by

samples paper note and leave it in the package. We also specify the weight of all samplesand send receipt to the customers.

Taking photograps of goods (if necessary)

Creatingand analysingsamples

Creatingsamples:After taking enough necessary samples, we use appropriate mix

and filter method to create representative samples for goods. Samples are divided into

following parts:

+ Saving sample+ Trial sample

+ Sample for buyer (or seller) (if necessary)

Analysingsamples: When sending samples to inspection company, we have enclose

samples inspection order paper. And samples inspection order paper must be set up

for 2 sets: 1 set attached with samples, second set (with inspection organizations

signature) is saved in inspecting documents.

Resultsprocessing

Comparing the results to contract, L/C or orgininal samples and giving comments

about the appropriate of checking results. If having doubts about resutls, we need to re-

inspect from step 1 carefully, if necessary, we have to take samples again. For exported

goods, if results are not suitable, inspection organization have to nofify the customer for

solving problems.

Issueinspectioncertificate

Inspection certificate is granted as soon as finishing all aboved tasks and not later than

3 days from the day finishing inspection, and before the expiry date of claiming

(imported goods). Inspection certificate sample according to customers request, contract,

L/C or if not have particular regulation, inspection company will grant inspection

certificate with their form.


29/51

2. Method ofinspectinggoods detailquantity2.1Definition

Inspecting imported goods detail quantity is specify the real number of commodities

(undamaged bag cargos, packages) and compare to goods quantity of the seller.Inspected goods are the volume of commodities having the same specification and

quality, same quality inspection certificate and are appointed by clients request.

2.2ProcessPreparation

Step 1:Checking Receiving inspection order procedure

Step 2: Examining enclosed documents: Contract, L/C, Packing list, technical

document (if product is machines or equipments: map, technical drawing, instructionmanual), the figures, checking method, expected date for loading on board (exported

goods), expiry date of claiming (imported goods).

Step 3:Anticipative tasks: planning tasks must be done on the location, calculating

the quantity of samples must be taken for inspecting, predicting difficulties and way to

solve problems.

Step 4: Preparing papers, equipments, bags and preserve machines samples, camera,

etc.Worksonthescene

Step 1: Checking codes, arrangement and preservation of goods. Goods must be

arranged by sections or areas for examining, counting quantity, taking samples

conveniently. If the quantities of packages are not enough representing for goods, we

must notify to customers by document for rejecting or delaying inspection.

Step 2:Checking packings before opening. If find out damaged packing, we have to

separate them to different area. After that, we must notify to the owners of goods for

supplementing damaged inspection order or finding ways to solve problems.

Step 3:

Checking quantity of goods: only examining undamaged and dry commodities.


30/51

Notes: For commodities that we have to open 100% bags or packages, but there were

some damaged packages, we only inspect the opened bags or packages. For commodities

that we have to open X% bags or packages, but the numbers of remained bags or

packages are not enough for X% or it has X% but not enough for representing for allcommodities, we only inspect the opened bags or packages.

Inspecting method: Basing on purchasing unit in Contract, L/C; we will measure,

count directly or by intermediate way through machines, specialized watches. The figures

that we collected can be the numbers of all or remained goods after deducting the

compensation (damaged electronic components, equipments, machines) or deducting the

inappropriate figures (margin part of PE material, woods cover)

Notes: If discovering damaged goods, wrong specification, we have to fully recordthis situation in inspection process paper. Inspection results must be written by real

quantity of each types, each packages.

Taking photographs of goods (if necessary)

Step 4:Calculating and processing results

Calculating results:Basing on inspecting results on the location, we will calculate by

each kind of goods and compare to the customers document.

Processing results: For imported goods: certify results, compare to the quantity of theseller. For Exported goods: if not have enough goods, we must notify to the customers for

solving problems.

Issueinspectioncertificate

Inspection certificate is granted as soon as finishing all aboved tasks and not later than

3 days from the day finishing inspection, and before the expiry date of claiming

(imported goods). Inspection certificate sample according to customers request, contract,

L/C or if not have particular regulation, inspection company will grant inspection

certificate with their form.


31/51

3. Method ofinspectinggoodscommercialvolume3.1.Definitions

Inspecting commercial volume of a batch of exported/imported goods is determining

goods volume with prescribed humidity of undamaged dry packages before comparingwith the volume of sales.

Inspected package of goods is the package of goods of the same the same quality

specification with the same certificate of quality specified in the written request of client.

Commercial volume is the volume in which every 100 units of mass of dry goods is

added the number of unit of mass of water followed the prescribed proportion.

Humidity recovery is the proportion of water over 100 units of mass of dry goods.

Prescribed humidity recovery is the humidity written in the contract, that is the

prescribed proportion of water to be added to 100 units of mass of dry goods.

Real humidity recovery is the proportion of water in 100 units of mass of dry goods.

Attention: The above definitions are common definitions followed conceded general

convention. However, in international trade, definition of commercial volume is

expanded:

-

Volume on dryness (proportion of water is zero)- Volume on prescribed proportion of water (volume of goods in which every 100

units of mass of dry goods and water has the prescribed number of units of mass of

water)

3.2. Process

Preparation

Step 1:Check request of inspection receiving procedure

Step 2: Examine enclosed documents: Contract, Letter of credit, Packing list, terms of

commodity names, units of mass, criteria, method of testing, expected date of unloading

goods (exported goods), expiring date of compensation (imported goods).


32/51

Step 3: Schedule works: Schedule works on the scene, anticipate difficulties and

solving methods, calculate the number of package to be taken to weight with package,

calculate the number of package to be opened to be sample to measure humidity, etc

Step 4: Prepare papers, , tools, sample bags, scale with technical precision of 0.01 g,enough weights, camera (if neccesary).

Works on the scene

Step 1:Check the goods:

- Check the codes, state of arranging and storing the goods. The goods must be

arranged in block to be convenient for checking the goods. If the number of

packages is not sufficient to represent the block, the checker must immediately

notify the requester in writing to refuse or suspend the inspection.

- Check the packaging before opening: If finding that the packing is not undamaged,

the package must be set aside and the goods owner must be reported to supplement

the request of inspecting damage or to find another solution.

Step 2: Test the scale: Ask the goods owner to check the scale verification certificate

(issued by the authorities and unexpired). In the case that the inspector has the the scale

verification certificate issued by the authorities, the inspector can verify the scale before

weighing goods.

Step 3: Test technical scale: Put the scale at the place with enough light, no wind

before proping the scale, geting the balance and checking the accuracy and sensitivity of

the scale.

Step 4: Weight: The number of bags, packages taken to be weighed is according to

the estimation before. Weigh undamaged dry packages only and weigh each package

separately. Weigh gross weight if the volume of goods in package is no or a little change.

Weigh net weight if the goods in package has easily change in the volume.

Step 5: Weigh packing: If weighing gross weight, after weighing, open 10 packages

to weigh packing. After weighing packing, compare the weighted volume of packing with


33/51

volume of packing of sales, if the volume of each packing is over 3% difference, weight

from 10 to 20 more packages. Take the result of the second time of weighing to calculate

for the entire batch of goods on the principle of average (if packing is the same for the

whole batch).Step 6: Sample: Follow the method specified in contract, L/C. If there is no

specifications, follow the regulations of Inspection Company or current regulations.

Weigh sample by a technical scale with precision of 0.01 grams.

Dry samples, calculate real humidity recovery andreal humidity

- Dry samples: Samples are dried in the oven at specified temperature (depending on

the type of goods) until the volume becomes constant. The volume is considered

constant when there is no difference of more than 0.05% between two consecutivetimes of weighing (drying time is about 30 minutes).

- Calculate real humidity recovery (Rt)

Calculate for each sample by this formula: %100Pb

PbPaRi

!

In which:

Ri: Humidity recovery of each sample

Pa: Volume of sample before drying

Pb: Volume of sample after drying

Calculate for each series/sample after removing the unreasonable resul by this formula:

nRt

1!

!

n

1i

Ri

In which:

Rt: Real humidity of series/sample

n: Quantity of dried samples in a series before removing unreasonable results


34/51

- Calculate realhumidity (Rt)

Calculate for each sample by this formula:Pa

PbPai'R

! %100

In which:

Ri: Humidity of each sample

Pa: Volume of sample before drying

Pb: Volume of sample after drying

Calculate for each series/sample after removing the unreasonable resul by this formula:

ntR 1' !

!

n

i

iR1

'

Calculate commercial volume and process the results:

- Calculation the results

Calculate commercial volume (Pt) with specified humidity recovery. Calculate by the

formula:Rt100

Re100NtPt

!

In which:

Pt: Commercial volume with humidity recovery specified for each series/sample

Nt: Net weight for each series/sample

Re: Humidity recovery specified in the contract

Rt: Real humidity recovery of each series/sample

Calculate commercial volume (P't) with specified humidity:

)t'Re'R(NtNtt'P s!

In which:

(Re' - R't): If > 0, use (+), if < 0, use (-)

Pt': commercial volume with humidity specified for each series/sample

Re': Humidity specified in the contract

R't: Real humidity of each series/sample


35/51

Calculate commercial volume with dryness (humidity = 0): )'%100(' tRNttP !

For imported goods, certify on test results, then compare with commercial volume of

sales. For exported goods, if there is excess/shortage of 0.3% or less, cetify all the papers

of the seller, if over 0.3%, notify the goods owner to solve the problem, if can not repairthen certify on the actual test.

Issue inspection certification

Inspection certification is issued right after the above things completed and latest no more

than 3 days from the date inspection completed and simultaneously before the expiring

date of complaint (for imported goods). Sample of inspection certification follows the

sample of requester, contract, L/C. If there is no specifications, issue with their form.


36/51

IV.SOME EXAMPLES RELATED TO

THE INSPECTIONOF THE SPECIFIC GOODS.

1.Whiterice Pre-shipmentinspectionby AIM Corporation

The inspection procedure includes these following steps:

1. At first, when the exporter wants to have the goods inspected, he has to send

documents to require inspection. The documents include:

- Inspection order (see Appendix 1)

- Contract and accessory of contract (if have)

- L/C and amendment L/C (if have)

2.

The inspection organization checks the documents.3. The inspection agreement is made. (see Appendix 2)

4. Inspection organization conduct inspection the commodity:

y The inspection organization takes samples of rice cargo loading. In this step, the

inspector will do as follows:

- The Weigh Scale is checked before packing with standard weight

Picture 1: Checking scale (Source: AIMCorp.)


37/51

- Pre-Loading Samples are taken, packed and sealed before loading

Picture 2: Taking samples (Source: AIMCorp.)

- Loading Samples and reference samples are taken

- Lab Analysis rice samples are taken for physical and chemical analysis in the

laboratory

Picture 3: Checkingrice quality (Source: AIMCorp.)

- Composite sample mixing is taken for all samples of each day of Loading

- The Weigh Scale is checked before packing with standard weight

- Rice Quality laboratory testing

- Grain Composition, types and grades of rice

- Rice Defects

- Chemical Analysis


38/51

- Amylose content and moisture content

Picture 4: Checking humidity (Source: AIMCorp.)

- Milling degree and Milling period

Picture 5: Checkingrice quality (Source: Intertek)

- Admixture of other non-glutinous rice varieties

- Alkali Test, Non-radioactivity test, DNA test, GMO test

- Aflatoxin B1and B2, and G1 andG2

- Pesticide residue analysis

y General Rice Shipment Inspection:

- Check Job Assignment Details: Shipper, Commodities, Specification, Weight,

Packing, Mark, Quantity, Vessels Name, Destination, Inspection date, etc.

- Tare, gross and net weight of packaged rice is checked

- Rice Quality is checked before and during loading

- Cargo is checked for worms, insects, foreign matter

- Digital Photos are taken during the course of inspection


39/51

- Rice weighing inspection:

o The Weighing scale is checked before packing with standardized weights

o Tare Weight of empty bags is checked

o

Random checking of gross weight is performed

Picture 6: Checking weight (Source: AIMCorp.)

- Uniform Weight is reported

Picture 7: Reject to shortage bags (AIMCorp.)

y Rice loading inspection:


40/51

- The Inspector checks the condition of the Lighter, including cleanliness,

previous cargo, type of floor, overlaid with dunnage and suitable for

fumigation

Picture 8: Checking condition of the floor

- Before container stuffing, the empty container is checked for cleanliness, dry,

free of odour, free of infestation, watertight, etc.

- Rice product quality is checked during loading. report in statement of fact for

rice loading, physical analysis report and finding for worms, insects, and

foreign matter is performed

Picture 9: Random checking on the quality (Source: AIMCorp.)


41/51

5. Inspection organization announces the result (see A ppendix 3) and give official

certificate.

- SGS certificate model for weight and quality (see Appendix 4)

-

SGS certificate model for rice specifications (see Appendix 5)2. GarmentInspection

Our group will introduce to you about Garment Inspection Method ofAIMControl

Inspection Group.

2.1 TypesofInspectionsofGarment

Pre-Production Inspectionof Garment: Pre-Production Inspection of Garment of

AIMControl Inspection Group is done before production starts. It is done to crosscheck

for final verification of Bulk fabric and trims materials, styling cutting way,manufacturing details and workmanship of the garment or pre-production sample as per

the customer requirement.

1st inline Production Inspection: 1st line Production Inspection of AIMControl

Inspection Group is done at the start of production when first production output of

particular style of garments is inspected; to distinguish possible discrepancies or variation

and to do necessary corrections to be made bulk production. This type of inspection is

done at preliminary stage of manufacturing of a style covering mainly style detail,

general appearance, workmanship, measurements, fabric quality, Trims and components,

Lot color, printing, embellishments and washing quality.

2nd line Production Inspection: 2nd line Production Inspection of AIMControl

Inspection Group is done during production to ensure initial discrepancies have been

corrected and rectified. This inspection is a follow-up of the 1 st inline production

inspection and is generally carried out after 1st line inspection when discrepancies have

been detected at that time.

Final Random Inspection: Final Random Inspection of AIM Control Inspection

Group is carried out when the production of the total quantity of an order or partial

delivery is completed. A sample lot will be selected from the order and a percentage of


42/51

the garments will be inspected, this percentage usually being stipulated by the buyer. The

AQL sampling inspection system as specified by the buyer.

2.2 GarmentDefectsClassification

Once the samples are selected, each article is to be individually inspected. Defectsdetected during an inspection are buyer specific so therefore vary from one buyer to

another. Defects are classified within the following categories:

y CriticalDefect:A serious defect that can cause harm or injury to the user and/or

result in a hazardous condition.

y Major defects: A defect that falls to meet the mandatory regulations directly

affecting the usability, salability, safety and value of the merchandise or as

specified by customer buyer are considered as major defects and are generally nonrepairable for example fabric hole, shading among panel, wrong measurement,

foreign yarn, dye patches etc. The measurement tolerate level may vary from

customer to customer.

y MinorDefects:A defect that does not adversely affect the usability of the product

but does consists of a deviation from the original sample, and may affect the sale

of the product. Some of these defects are due to workmanship and some can be

repairable but still can deteriorate the serviceability of the merchandise for

example stain, skip stitch, wavy bottom hem etc

2.3Inspection MethodsofGarment:

Singlesamplingplan-Normalinspection

Assurance as AQL 2.5% and a lot of 1,200 garments and the sample size is 80 garments.

If the number of defective garments found are 5 the total lot is "Acceptable" suppose if

the garments found is 6, the total lot is "Reject/Re-Check".

Doublesamplingplan-normalinspection

Assurance an AQL 4.0% and lot size is 1,200 garments and the sample size is 80

garments. If the number of defective garments found is 7, the total lot is "Acceptable"

suppose if the defective garments found are 8, the total lot is "Reject/Re-check". Today

most of the customer demand for high quality products in low prices. So we should


43/51

maintain the quality from the beginning stage of the production then only the final

product with reach the consumer with right quality and we can get the order continuously

from our customers. The garment manufacturers inspect their products continuously by

designated responsible inspectors then only the right quality product will reach theconsumers.

Inspection-shipmentcartonselection

For pre-final inspection, selection of cartons from total cartons packed can be done based

as shown table:

No Total cartons in Shipment Total

cartons in Shipment

Carton

Selected

1 1-15 22 15-25 3

3 26-90 5

4 91-150 8

5 151-280 13

6 281-500 20

7 501 and above 32

Whatis AQL RandomSamplinginspection?

AQL stands forAcceptable Quality level. The AQL determines the maximum amount

of admitted defective units in a sample. AQL, for purposes of sampling inspection, can be

considered satisfactory as a process average. The most commonly used AQL is a major

2.5 Minor 4.0. The AQL random sampling inspection is derived from the mathematical

theory of probability and is based on the sampling these defined in military standard

105D (MIL - STD - 105D). Some defectives are considered acceptable.

This method constitutes taking random sample from a lot of merchandise, inspecting

them and depending on the quality of the sample inspected determining whether the

entire lot is acceptable or not. The MIS - STD - 105D (also BS 6001, ISO 2859, DIN

40080) provides the sampling plans; and these determine the number of samples of be


44/51

inspected in lot size, in addition to indicating and the acceptable quality level (AQL)

which represents the maximum number of defects per hundred units that, for the purpose

of the sampling inspection can be considered satisfactory as a process average.

In general cases the buyer will determine which sampling plan and what AQL toadopt. The AQL 1.5 is applied when severe inspection conditions are required for

expensive items like up market orBoutiques. The AQL 2.5 is applied when textiles or

normal/good quality are involved. There are three types of sampling plans. Each

sampling plan can be performed at three levels, i.e. normal tightened and reduced,

depending on inspection requirements and quality of the products. In the garments

industry generally single and double normal sampling plans are applied. The sample size

code letter table shows various lot sizes corresponding to a series of code letters. Thereare seven inspection levels, four for general inspection (already mentioned) and three for

special inspection. For garment inspection, general inspection level II (normal II) is

normally applied.

HOW TOUSE THIS AQL CHART

- Acceptable Quality Levels

- Single Sampling Plans for Normal Inspection

- AQL's in Percent Nonconforming Items and Nonconformities per 100 items

normal inspection


45/51

Picture 10:AQLs in Percent Nonconforming Items and Nonconformities per100 items

(Normal Inspection) (Source:AIM Inspection Control Group)

This up arrow means, use the first sampling plan BELOW the arrow. If sample size equals, or exceeds, lot size,carry out 100% inspection.

This down arrow means, use the first sampling plan ABOVE the arrow.


46/51

Picture 11: Sample Size Code Letters

(Source:AIM Inspection Control Group)

Example:

If an order is 10,500 units. When using General Inspection Level II, the factory learns

from the second chart that this quantity order equates to "M". The factory then goes to

the first chart and sees that for "M" they should inspect 315 garments. If they want a 2.5

AQL they can have 14 defective units or less from the 315 that they inspect. If they have

15 defective units or more they are rejected. If they want a 4.0 AQL they can have 21

defect units or less to pass and they have 22 defects they will be rejection.

The defects are based on defective units (defective garment). It is not based on each

actual defect on the garment. For example, a shirt may have 3 different defects on the

shirt, but this is only registered as "one" defective garment.

For your reference, we typically use General Inspection Level II.


47/51

2.4GarmentInspection ProcedureofAIM InspectionControl Groupy Standard adopted in GarmentInspection:

- Sampling method: mil-std-105e

- A

cceptable level: aql2. 5/4.y GarmentInspectioncontent:

- Actual quantities

- Fabric and trim

- Style and color

- Workmanship

- Size measurement

- Inner packaging

- Shipping carton

y Record in GarmentInspection:

- All representative defects and key points would be photographed by digital camera

and sent to the applicant.

- For representative defects of garment, we would take a sample possibly for keeping.

(the garment sample could also be sent to the applicant by collect on request. )

- All sizes we measured would be written on the inspection record sheet on the spot.

- All serious problems or other special points would be written as special attention

attached the inspection record sheet. Report: Inspection report would be sent to the

applicant on next working day after the end of inspection. The applicant would be

informed the inspection result by the following information:

+ Garment inspection report

+ Size measurement chart

+ Digital images


48/51

Picture 12: Some pictures of inspecting garment samples


49/51

CONCLUSION

Nowadays, Inspection field which covers almost sides of society is so diversified and

rich. Inspection Organizations are not only taking the role of inspecting goods but also

holding the inspection all stages of manufacturing products and all fields relating to

goods in accordance with customers request. Besides, because of globalization and the

development of international business, there were many traditional and new kinds of

inspection such as: information inspection, designing inspection, pricing evaluation

developing powerfully. Especially, Vietnamese inspection market is so complicated with

various inspection organizations, so entrepreneurs should choose inspection partners

having prestige, experiences, working efficiently and safely.

In recent years, inspection reality proved that the main reasons leading mistakes

inspection organization and enterprises difficulties are also beginning from the lack of

standards, regulations, overlapped legal law as well as goverments loosed management.

Therefore, in development of inspections demand, it is necessary to have the

improvement of inspection organization in particular and Vietnamese inspection field in

general. Concurrently, government need issue legal documents appropriately, updately,

particularly for creating solid legal system which can help inspection field as well asenterprises.

In sum, to enter industrial and modern way, develop export-oriented economics; all

industries including inspection industry must make best efforts for improving and

developing Vietnam economics and society.


50/51

REFERENCES LIST

Materialsfrombooks,magazines,thematicreport

1. PhD. Bui Thanh Trang. (2011). Lecture note of teacher.

2. Professor. Doctorate Doan Thi Hong Van. (2010). Importand Export Management.

General Publisher HCM city.

Materialsfromwebsties

1. SGS

http://www.vn.sgs.com/home_vn_v2.htm?selen=1&

2. AIMControl Group

http://aimcontrolgroup.com/eg/a/1/0/1.htm

3. Vinacontrol

http://vinacontrol.com.vn/home/default.aspx

4. Asiacontrol

http://www.asiacontrol.com/

5. Intertek

http://www.intertek-cb.com/

6. B

ureau Veristahttp://www.bureauveritas.com/wps/wcm/connect/bv_com/Group


51/51

INDEX

Tt Inspecting Goods

Documents

Transcript of Tt Inspecting Goods