Understanding AQL (Acceptable Quality Limit)
Pre-Shipment Inspection (PSI) takes place when at least 80% of your production order is finished and 100% packaged. Testing every single item in a 10,000-unit batch is impractical; instead, ISO 2859-1 (ANSI/ASQ Z1.4) statistical sampling tables define the sample size.
Defects are categorized into Critical (0 allowance - e.g. safety hazard), Major (typically 2.5 AQL - affects function/saleability), and Minor (typically 4.0 AQL - superficial cosmetic blemishes).
Why Final Payment Ties to PSI Approval
The standard international sourcing payment term is 30% deposit upon PO issuance and 70% balance upon successful PSI inspection report sign-off. Once the balance is paid and the container departs Ningbo or Shenzhen, remedying defects becomes exponentially more difficult.
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