Inspection and quality control: SGS, Intertek and COAs

By Moril Trading Enterprise Inc.. Last updated .

An independent inspection is the buyer's best protection in palm oil and rubber trade. A surveyor such as SGS, Intertek or Bureau Veritas samples the cargo, tests it against the contract, checks the quantity and supervises loading, then issues certificates. You should name the surveyor in the contract, agree where the results are final, and confirm every certificate directly with the surveyor before you pay.

This guide covers what an inspection includes, how to read a certificate of analysis (COA) and the checks that stop forged paperwork. It applies to both crude palm oil and TSR20 natural rubber.

What a pre-shipment inspection covers

StepTSR20 rubberCrude palm oil
SamplingBales drawn from each lot under an agreed planSamples from shore tanks and during loading
Quality testingDirt, ash, volatile matter, nitrogen, Po, PRI, Mooney if agreedFFA, M&I, DOBI and other agreed parameters
QuantityBale count and weighingTank gauging or flow meter, certificate of quantity
ConditionBale wrapping, pallets, container conditionFlexitank fitting, tank cleanliness
LoadingSupervision of container stuffing and sealingSupervision of loading and sealing
DocumentsCertificate of analysis, weight certificate, loading reportCertificate of analysis, certificate of quantity

Sampling rules matter as much as the tests. For raw rubber, ISO 1795 sets out sampling and sample preparation. For oils, contract forms and ISO 5555 describe how oil is sampled. Agree the plan in the contract so neither side can dispute it later.

Load port or discharge port: where results are final

Contracts usually say that quality and weight are final at loading, as certified by the named surveyor, or final at discharge.

  • Final at loading gives the seller certainty and is common for FOB and CFR sales. The buyer relies on the surveyor and should choose one they trust.
  • Final at discharge protects the buyer against changes in transit, but needs a process for testing at destination and settling differences.

Many contracts use load port results for payment and allow a claim if discharge results fall outside specification, with an umpire laboratory to settle disputes. Our sales contract checklist covers the wording.

How to read a certificate of analysis

Check these points on every COA:

  1. Issuer. The surveyor's or laboratory's name, address and accreditation, ideally to ISO/IEC 17025.
  2. Identification. The lot, bale or tank numbers, and the vessel, containers and seals. These must match the bill of lading and packing list.
  3. Dates. Sampling date and test date, close to the loading date.
  4. Methods. The test method for each parameter, matching the contract.
  5. Results. Each result against the contract limit, not only against the grade.
  6. Signature and reference. A unique certificate number you can verify.

Confirming certificates are genuine

Forged inspection certificates are one of the most common tools in commodity fraud. A real certificate can be confirmed with the issuing office.

  • Find the surveyor's contact details yourself, from its official website, not from the document or the seller's email.
  • Send the certificate number and ask the office to confirm it was issued, for which cargo and with which results.
  • Be wary of any certificate the seller says cannot be verified, or that arrives only as a scan with no reference.

Our guide to commodity trade scams describes other warning signs.

Appointing your own surveyor

Buyers can appoint their own surveyor or ask for a joint inspection. That costs more but removes doubt for a first order. If the seller refuses any independent inspection, treat that as a serious warning.

Who pays for inspection

Inspection fees depend on the surveyor, the number of lots and the tests ordered, and are usually small next to the value of the cargo. The contract should say who pays. Where the seller appoints the surveyor, the cost is normally in the price. A buyer-appointed surveyor, or an umpire laboratory in a dispute, is usually paid by the party that appoints it.

Buyers can appoint their own surveyor with us, or we propose one of the independent surveyors we work with and confirm the choice with the buyer before loading.

Samples before the contract

Inspection is different from a sample. A sample shows what a seller can produce. An inspection shows what is actually in your cargo. You need both: a sample to agree the specification, and an inspection to confirm the shipment meets it. See ordering samples and pre-shipment inspection.

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