Pre-shipment inspections are used when the importer is purchasing on a "cash-in-advance" or on a letter of credit basis.

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Pre-shipment inspections are typically used in situations where payment has not yet been made, such as when the importer is purchasing on a "cash-in-advance" or on a letter of credit basis. This helps to ensure that the goods being shipped are of the correct quantity, quality and specifications as agreed upon in the sales contract.

Pre-Shipment Inspections Are Used When the Importer Is Purchasing on a "Cash-In-Advance