Inspection costs are an essential aspect of any project’s budget. Several factors must be considered, including which standard of the inspection your project will adhere to.
The most rigorous ISO standard for inspection is section A; 17020, which requires a third-party company not affiliated with any part of the project to conduct the assessment.
The costs associated with such a stringent inspection may cause concern; however, the costs associated with not conducting the inspection can be dire.
In this article, we will explore the costs associated with third-party inspections in China and a complete cost-breakdown for each segment of inspection.
Costs of Engaging Third-Party Inspectors in China
Understanding the vital role that third-party inspectors play in the import sector, budgeting for inspection costs is essential. At Huaxin, we typically charge a rate of $299 per workday while this may seem like a large sum, it’s a small price to pay for the peace-of-mind that an expert product inspection brings. Since we value transparency, below, you will find out cost breakdown.
As mentioned, we offer daily rates for our services. Here are some of the critical activities we can achieve in a day’s work.
(Times listed are general estimates and subject to change)
We first go through the client’s documents and checklist before heading to the factory. This activity typically takes 15 to 30 minutes, depending on the nature of the inspection details.
We then head to the factory for the inspection. On average, these journeys take between one and two hours.
We also set up an introductory meeting with the manufacturer before heading to the warehouse – 10 minutes.
Our inspectors also physically count the number of goods produced, obtaining random samples, and inspecting them. These activities take anything from as little as 10 minutes to as high as over 4 hours.
We ensure to inspect the packaging (both inner and outer), which entails visual checks and other time-consuming tests. This detailed activity can easily take as much as four hours.
Unfortunately, we have to take a mandatory factory lunch break, which can take almost one and a half hours.
We then note down all necessary information, which shall then be presented to the factory representatives for discussion – 15 minutes.
Traveling back to the office from the factory should once again take one to two hours, depending on the distance.
Finally, we prepare a draft report of the factory findings, including photos and clear comments.
The $299 daily flat rate assumes that the warehouse is only 60 km away from our departure point. However, if the factory is 120 km away, we will charge you an extra $50. If the warehouse is even further away, say 400km, we will charge you an additional working day (at half price), and $100 on top.
Travel-times must be factored into the equation. The further away the warehouse is, the longer it will take to traverse and effectively conduct the inspection. Consequently, this means that it might take longer to inspect Factory A (400 km away) than Factory B (50 km away).
Cost Implications of Quality Control to the Supplier
If you’re just getting started on importing, you might have a couple of questions regarding whether your supplier will incur any costs during the inspection. This is an understandable concern as you wouldn’t want to be overwhelmed by unforeseen expenses, especially during your first shipment. Fortunately, as you will see below, these cost implications result from the manufacturer’s error and are not yours to bear.
In the case that the quality of goods produced is subpar, it is the supplier’s responsibility to reproduce more goods to replace them. Unfortunately, this repeat job may result in delivery delays, and the importer might request air freight instead, at the supplier’s cost. The financial implications can get even worse for the supplier if the spoiled goods are realized after delivery to the client.
Some suppliers may object when importers engage third-party inspectors, possibly expecting to incur the costs of facilitating the inspection process. However, this misconception can easily be ironed out as noted below:
For starters, scheduling inspections should only take five minutes.
It is not the supplier’s responsibility to pay for the inspector’s transportation costs. All they need to do is assist them by calling a taxi, which the inspector will pay for themselves.
It is also not the supplier’s responsibility to provide the inspector with food.
The supplier is also not obligated to accompany our inspector during the entire inspection process. This means that the supplier’s time and resources do not go to waste.
When it comes to sampling, the supplier can assign an unskilled worker to our inspector. This process typically takes less than two hours.
Lastly, if our inspector finds any discrepancies with the goods, it will only take about 15 minutes to discuss these findings with the supplier’s representative.
In summary, the total inspection time should only cost the supplier 1-2 hours for an unskilled factory worker, and approximately 15 minutes for the factory manager. This translates into minimal if not insignificant cost implications to the supplier.
Inspection on a Tight Budget
All businesses are not the same – you could be a first-time importer shipping in goods worth less than $600. Obviously, this means that the $299 daily rate would be unreasonable for your company. However, we offer alternative methods of inspection to accommodate more modest budgets.
For example, a virtual examination can be performed using product photos and videos when possible. Additionally, the manufacturer can also send you a few samples during the production process. It might be even safer and sustainable for you to consider working with a local wholesaler rather than importing from China in worst-case scenarios.
Your Reliable Inspector: Huaxin
Whether you are just getting started or looking to sever ties from your current third-party inspectors, Huaxin is a trusted name in Quality Assurance inspection in China. We offer our clients expert inspection and quality control services at affordable rates. Contact us today to get started!