Reject Number
Meaning ~ The reject number is the minimum number of defective units in an inspection sample that triggers the formal rejection of an entire production lot.
On-Site Sorting
Meaning
Factory-floor verification procedure isolates defective manufactured units within a supplier facility before cargo release, preventing substandard batches from entering international logistics channels. On-site sorting sits directly inside the quality control annex of a master supply agreement, protecting buyers from absorbing freight charges on damaged goods. Commercial practice diverges from standard statutory frameworks because factory representatives routinely perform the examination under buyer supervision rather than employing neutral third-party inspectors.
Cost Allocation
Financial liability shifts immediately when sorting reveals batch failure, forcing suppliers to absorb labor charges and production downtime. Buyers avoid paying customs duties on defective units because the separation happens prior to export declaration and bill of lading issuance. Operational expenses multiply rapidly when rework requires specialized tooling or extended warehouse storage during the verification window.
Defect Classification
Major discrepancies trigger total lot rejection while minor deviations permit selective extraction and immediate remediation of the affected merchandise. Visual inspection protocols govern cosmetic flaws, whereas dimensional checks require calibrated gauges specified in technical drawing tolerances. Inspectors document every rejected unit on a formal non-conformance report to establish a verifiable baseline for subsequent vendor negotiations.
Remedial Trigger
Contractual thresholds dictate the exact percentage of allowable defects before a full production stoppage becomes mandatory under the purchase order. Suppliers face tiered penalties or chargebacks when sorting operations extend beyond the agreed delivery window and delay the vessel booking. Early detection eliminates downstream dispute resolution costs by resolving quality disputes before the commercial invoice is settled.