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This article provides you with information about goods inspection services which is provided by third party inspection companies.
This article is a supplementary article for the Goods Inspection article. It is recommend that you first read the goods inspection article, and then come here for supplementary information:
Finished Goods Inspection Procedure
There is some information in the Finished Goods Inspection article. The detail procedure is different from one type of equipment or material to another. But what is in common are following items:
- Visual Inspection
- Dimensional Inspection
- Quality Control Document Review
- Quantity Inspection
- Packing and Marking Inspection
- Sometimes Loading Inspection
I want to provide an example to explain the procedure. There is a purchase order for 100 line pipes 6 inch ASTM A 106 Gr.B, SCH 60 and 6 meters
The third party inspector would be attended in the supplier warehouse and visually check the pipes for any mechanical damage or imperfection. (The inspection would be done based on referenced standards). The stenciled marking also would be controlled. The placing of protecting caps in both sides of the line pipes would be checked.
The pipe thickness, outside diameter, inside diameter and length would be measured to be in the range of specified tolerances.
The quality control documents, such as material test reports, hydrostatic test reports and NDE test reports would be reviewed and endorsed.
The number of pipes would be counted to meet the purchase order.
Packing and marking of the pipes would be inspected based on the packing and marking procedure, if a procedure is not provided, it would be inspected based international standards or practice. For more information, please see the Seaworthy Packing Procedure article.
If loading is in the scope of work then the third party inspector would be a witness to the safe loading of the pipes to the container and would note the container door seal numbers.
Goods Inspection Report
In the above example, when the inspector completed his/her inspection, he/she would write the goods inspection report and describe all inspection activities and the result of the inspection. For more information about this, please review the Establishment of Inspection Report article.
Certificate of Inspection of Goods
When the third party inspector carries out an inspection and the result are satisfactory, then depending on the purchase order, the inspection certificate for goods are issued by third party inspection agency.
If there is a letter of credit in place and inspection is mandatory for the terms of LC, the inspection certificate needs to be issued after shipment and when the third party inspection agency receives the shipping documents.
If there is no LC between a buyer and seller, or there is an LC but without mandatory requirements for inspection, then the inspection certificate might be issued based on the agreement of the buyer and seller. Sometimes in this case, there is no need for certificate, and an inspection visit report would be enough.
For more information, please review the Certificate of Inspection article.
Goods Inspection Services – Incoming Goods Inspection
The incoming goods inspection is used when there is an agreement between the buyer and seller for having an inspection in the destination country or place. It might be done instead of the preshipment inspection or it may be agreed that inspection is to be done two times i.e. before shipment and when it reaches the buyer.
This terminology is also used by governmental authorities when there is a mandatory rule for incoming goods inspection to their countries’ ports and before clearance from customs. These might be applied to some specific goods.
Goods Inspection Process
The process for goods inspection described in other articles in this site and also in this article. Here are the important steps for doing a goods inspection:
- The purchaser is to determine third party inspection agency
- Third Party Inspection agency must be introduced to the bank for stating the name of the inspection agency in the Letter of Credit
- Deliver the purchase document to the third party inspection company such as the proforma invoice, purchase order, letter of credit, purchase technical specifications and inspection and test plan
- Send the inspection notification to the third party inspection company
- Carry out inspection
- Send the inspection report to the purchaser by the third party inspection agency
- Send shipping document to the third party inspection company
- Issue the inspection certificate by the third party inspection agency
- As mentioned in above, if there is no LC, then the formality might be a little bit different.
Goods Inspection Services – Goods Quality Inspection
This refers to the quality of the work. When we say goods inspection, in fact, we talk about quality inspection, quantity inspection, document review, packing inspection, marking inspection and loading inspection.
The quality inspection in the above example is the same we perform for document review, visual inspection and dimensional inspection.
Goods Inspection Services – Goods Inspection in letter of Credit
This applies to the goods inspection, which is done under the terms of letter of credit. For more information, please review the Pre-Shipment Inspection articles.
Goods Inspection Services – Goods Inspection Agreement
This is the agreement signed between the third party inspection agency and the buyer or seller. Sometimes buyers ask the sellers to consider inspection cost in their proforma invoices; in this case, the inspection cost would be paid by sellers.
Executive Summary & Industrial Inspection Scope
In demanding industrial environments across Oil, Gas, Petrochemical, Offshore, and Heavy Process Infrastructure, rigorous compliance with ISO 17020, API Source Inspector, ASME is essential to ensure operational integrity, personnel safety, and compliance with statutory regulatory frameworks. This technical specification provides QA/QC managers, procurement engineers, welding inspectors, and third-party inspection (TPI) agencies with an authoritative, field-tested guideline for “Goods Inspection Services”.
Ensuring compliance regarding goods inspection services services minimizes the risk of catastrophic asset failures, costly unscheduled shutdowns, and supplier non-conformances. The following technical sections delineate the scope of inspection, mandatory verification protocols, acceptance criteria, documentation deliverables, and root cause mitigation strategies.
Governing International Engineering Codes & Specifications
Verification and validation of Goods Inspection Services must strictly conform to the latest editions of the following international engineering codes and project specifications:
• **Primary Standard Reference:** ISO 17020, API Source Inspector, ASME
• **Quality Management & Inspection Systems:** ISO 9001:2015 & ISO/IEC 17020 (Requirements for the operation of various types of bodies performing inspection)
• **Material Compliance & Traceability:** EN 10204 Type 3.1 / 3.2 Inspection Certificates for metallic and non-metallic pressure-retaining components
• **Personnel Qualification:** ASNT SNT-TC-1A / ISO 9712 for NDT personnel, CSWIP 3.1 / AWS CWI for welding inspection, and NACE / AMPP Level 2/3 for coating and corrosion personnel
• **Statutory & Health Safety Directives:** ASME Boiler & Pressure Vessel Code (BPVC), API Standards, OSHA, and regional local authority regulations.
Step-by-Step Quality Control & Inspection Procedure
The execution of quality surveillance for Goods Inspection Services is structured across four progressive QA/QC intervention phases:
Stage 1: Pre-Inspection & Engineering Document Review (Review Point – R)
Prior to commencement of any physical activities or manufacturing operations related to Goods Inspection Services, the contractor or vendor must submit all technical submittals to the Owner or TPI agency for formal review and approval.
- Verification of approved Inspection and Test Plan (ITP) identifying all Hold (H), Witness (W), Review (R), and Surveillance (S) intervention points.
- Cross-examination of Material Test Reports (MTR / Mill Certificates) against standard design specifications (ISO 17020, API Source Inspector, ASME).
- Review and approval of specific Procedure Qualification Records (PQR), Welding Procedure Specifications (WPS), or calibration certificates.
- Verification that all measurement instruments, gauges, and NDT equipment hold valid calibration certificates from ISO/IEC 17025 accredited calibration laboratories (within 6 to 12 months validity).
Stage 2: In-Process Witnessing & Fabrication Control (Witness / Hold Point – W/H)
During the active execution phase, the certified inspector performs physical surveillance to ensure strict adherence to certified drawings, manufacturing procedures, and code tolerances.
- Verification of material traceability (heat number, heat treatment lot, plate number) transferred accurately onto fabricated components.
- Dimensional verification and visual inspection using calibrated gauges, micrometer depth dials, or laser alignment systems.
- Monitoring ambient environmental parameters (relative humidity, dew point, substrate temperature) when applying surface treatments, welding preheat, or pressure testing.
- Witnessing non-destructive examination (RT, UT, MT, PT, PMI) at specified percentages according to project critical rating and code requirements.
Stage 3: Final Acceptance, Pressure/Performance Testing & Marking (Hold Point – H)
The culminating milestone where the fully assembled or completed item is subjected to definitive acceptance tests in the presence of the Owner’s Third-Party Inspector (TPI).
- Execution of pressure proof tests (Hydrostatic at 1.3x to 1.5x MAWP or Pneumatic test) with dual calibrated pressure gauges and temperature recorders.
- Full visual inspection of completed surfaces, welds, protective coatings, and flange contact faces for absence of mechanical damage or code defects.
- Validation of permanent stamping, low-stress die markings, nameplate data verification, and barcoding in strict conformity with project specs.
- Clearing all open punch-list items, non-conformance reports (NCRs), and concession requests prior to issuance of the release note.
Stage 4: Packing, Preservation & Inspection Release (Inspection Release Certificate – IRC)
Ensuring the inspected equipment is adequately protected against atmospheric corrosion, mechanical shock, and marine transit degradation.
- Inspection of rust preventative coatings, desiccant bags, flange face blind protectors, and vapor corrosion inhibitor (VCI) packaging.
- Verification of heavy-lift sea fastening lugs, center-of-gravity markings, and export crating compliance (ISPM 15 wooden crating).
- Compilation and signing of the final Inspection Release Certificate (IRC / Shipping Release) and manufacturer data dossier (MDR).
Technical Acceptance Criteria & Tolerances Matrix
All measurements and physical characteristics must comply with the engineering tolerances and acceptance thresholds tabulated below:
| Inspection Parameter / Test Item | Applicable Standard & Clause | Permissible Tolerance / Acceptance Limit | Verification Method | Intervention Type |
|---|---|---|---|---|
| Material Chemical & Mechanical Verification | ISO 17020, API Source Inspector, ASME / EN 10204 3.1 | 100% compliance with minimum tensile, yield, elongation, and impact values (Charpy V-Notch at design temp) | Optical Emission Spectrometry (OES) / MTR Verification | Review (R) |
| Visual & Dimensional Tolerances | ISO 17020, API Source Inspector, ASME / Project Specs | Zero cracks, lack of fusion, severe pitting; dimensional tolerances within ±1.0mm to ±3.0mm per code drawings | Calibrated Vernier, Bridge Cam, Depth Micrometer | Witness (W) |
| Non-Destructive Examination (NDT) | ASME Sec V / ASNT SNT-TC-1A | 100% compliant with code acceptance criteria; zero planar defects or unpermitted volumetric indications | Radiographic (RT) / Ultrasonic (UT) / Magnetic Particle (MT) | Hold (H) |
| Pressure / Proof Testing (Hydrostatic) | ISO 17020, API Source Inspector, ASME / ASME Sec VIII | Test pressure maintained for minimum 30 to 60 mins; zero pressure drop, zero leakage or visible sweating | Dual calibrated Bourdon pressure gauges + Chart Recorder | Hold (H) |
| Surface Prep & Protective Coating Quality | SSPC-SP / NACE / ISO 8501 | Surface profile 50 – 75 µm; Dry Film Thickness (DFT) within 80/20 rule of specified nominal thickness | Replica Tape (ASTM D4417) & Magnetic Gauge (SSPC-PA 2) | Witness (W) |
| Nameplate & Final Preservation Verification | API / ASME / Client Specs | 316L SS nameplate securely affixed with correct design code, MAWP, design temp, and national board stamping | Physical visual check & VCI preservation verification | Hold (H) |
Mandatory QA/QC Dossier & Inspection Deliverables
Prior to the final issuance of the Inspection Release Certificate (IRC), the contractor and vendor must compile and submit the verified manufacturer data record containing:
- Approved Inspection & Test Plan (ITP) with sign-off stamps by Contractor, Client, and TPI.
- Material Test Reports (MTR / Mill Test Certificates EN 10204 Type 3.1 or 3.2).
- Certified Welding Procedure Specifications (WPS), Procedure Qualification Records (PQR), and Welder Performance Qualifications (WPQ).
- Calibration Certificates for all test instruments and measuring equipment (NABL / ISO 17025 accredited).
- Non-Destructive Examination Reports (RT, UT, MT, PT, PMI, Ferrite Content) evaluated by Level II/III inspectors.
- Heat Treatment & PWHT Time-Temperature Recorder Charts with thermocouple layout drawings.
- Hydrostatic / Pneumatic Pressure Proof Test Certificate with calibrated chart recorder logs.
- Surface Preparation and Protective Coating Inspection Reports (Daily environmental log, blast profile, DFT summary).
- Non-Conformance Report (NCR) and Concession Disposition Closeout Log.
- Official Inspection Release Certificate (IRC / Shipping Release Note) permitting packing and dispatch.
Common Non-Conformances & Field Mitigation Strategies
Based on extensive third-party inspection field records in oil & gas projects, the following deviations require heightened surveillance:
Defect / Hazard: Material Grade Substitution & Lack of Heat Traceability
Root Cause: Uncontrolled workshop storage, missing color coding, or unverified supplier sub-tier procurement without EN 10204 3.1 documentation.
Preventative Action: Enforce strict 100% Positive Material Identification (PMI) prior to cutting, and mandatory material receiving inspection with physical stamping cross-referenced to original mill test certificates.
Defect / Hazard: Out-of-Tolerance Fit-Up & Alignment Mismatch
Root Cause: Poor thermal cutting, thermal distortion from excessive preheat, or inadequate jigging and tacking arrangements.
Preventative Action: Establish a mandatory Witness/Hold point at joint fit-up before root pass deposition. Use calibrated Hi-Lo gauges to verify bevel angle, root face, and root gap according to the qualified WPS.
Defect / Hazard: Premature Coating Delamination & Blistering Under Film
Root Cause: Excessive soluble salt contamination (>20 mg/m²) left on the substrate, blast cleaning below dew point (<3°C above dew point), or oil/moisture in the blasting compressor air line.
Preventative Action: Perform Blotter Test (ASTM D4285) daily on compressed air, enforce Bresle patch chloride testing, and apply primer within 4 hours of abrasive blasting before rust blooming initiates.
Defect / Hazard: Pressure Drop During Final Hydrostatic Proof Testing
Root Cause: Micro-leakage through temporary test flange gaskets, entrapped air pockets inside vessel high points, or inadequate temperature stabilization.
Preventative Action: Ensure thorough venting at all high-point vents until bubble-free fluid emerges, allow minimum 15-minute temperature stabilization between filling medium and ambient metal, and torque all blind flanges with calibrated torque wrenches.
Frequently Asked Questions (FAQ)
Q: What are the mandatory qualifications for inspectors verifying Goods Inspection Services?
A: Inspectors must hold recognized international certifications applicable to the discipline. For welding and fabrication: CSWIP 3.1/3.2, AWS CWI, or API 510/570 Source Inspector. For NDT: ISO 9712 or ASNT SNT-TC-1A Level II minimum. For coatings: NACE / AMPP Level 2 or FROSIO Level III. Additionally, the inspection agency must operate under an ISO/IEC 17020 accredited quality management system.
Q: How does PtroTek resolve non-conformances (NCRs) encountered during vendor surveillance?
A: When a deviation from certified drawings or ISO 17020, API Source Inspector, ASME is detected, the inspector issues a formal Non-Conformance Report (NCR) within 24 hours. The vendor must submit a Root Cause Analysis (RCA) and proposed disposition (Rework, Repair, or Concession). Work on the affected component is halted (Hold Point) until the Owner’s engineering authority approves the disposition and a re-inspection confirms full compliance.
Q: What is the difference between Witness (W) and Hold (H) points in an Inspection & Test Plan (ITP)?
A: A Hold Point (H) is a mandatory milestone where fabrication or testing CANNOT proceed without the physical presence of the designated client or third-party inspector. Written clearance or stamping is strictly required. A Witness Point (W) requires prior notification (typically 24 to 48 hours) to the inspector; however, if the inspector fails to attend at the scheduled time, fabrication or testing may proceed with subsequent review of the test records.
Q: Can international clients review inspection reports and photos in real time?
A: Yes. PtroTek provides comprehensive Flash Reports issued within 24 hours of inspection completion, followed by detailed formal inspection reports accompanied by high-resolution calibrated photographic evidence, dimension logs, and signed vendor test records for complete global transparency.
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