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Can the balance payment depend on passing a pre-shipment inspection?

VIP-User
2026-10-14
{ "title": "Making Final Payment Conditional on Pre-Shipment Inspection", "content": "

Buyers and manufacturers may agree that the remaining balance will be paid only after the goods pass a pre-shipment inspection. This arrangement is enforceable when it is clearly included in the purchase contract, purchase order, or order confirmation. DOLUXE describes a quality-control workflow covering pre-production sample approval, mid-production checks, and a final AQL 2.5 inspection conducted according to ISO 2859-1. However, its listed payment options—bank transfer and Alipay—do not by themselves confirm that the balance is automatically linked to inspection approval.

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How to Structure an Inspection-Linked Payment Agreement

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To make inspection a condition for releasing the balance, the buyer and supplier should establish the arrangement before manufacturing begins. The written terms should explain the inspection standard, inspection timing, acceptance criteria, responsible party, documentation required, and the action to be taken if the products fail.

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  • State whether inspection is performed by the buyer, the factory, or an independent third-party company.
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  • Define measurable requirements for fabric, weight, color, dimensions, workmanship, decoration, packaging, and labeling.
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  • Specify the applicable sampling plan and acceptable quality limit, such as AQL 2.5 under ISO 2859-1.
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  • Confirm whether shipment is permitted before the balance is paid and what happens after a failed inspection.
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  • Set deadlines for corrective action, reinspection, inspection-report delivery, and balance payment after approval.
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DOLUXE Quality Control and Production Capabilities

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DOLUXE states that

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