Inspection Terms Used in Scrap Business

In the scrap business, inspection is where trust is built or broken. A buyer can't see inside a sealed container on another continent. A seller can't control what happens on a mill's unloading floor. Between them sit weighbridges, surveyors, certificates, samples, photos and a specialised vocabulary that decides who gets paid what.

If you don't understand terms like "final at loading," "weight franchise," "umpire assay," "VGM" or "PSIC," you can easily sign a contract that works against you, accept deductions you shouldn't, or miss a document that gets your cargo stuck at port.

This guide explains the most important inspection terms used in the scrap trade, grouped by category, with practical notes on why each one matters. Whether you're a seller, buyer, trader or new to the business, keep it as a reference.

Why Inspection Terms Matter

Scrap is a variable material. Two loads described as "HMS 1&2 80:20" can differ in thickness, contamination, rust and moisture. Two lots of "copper No.2" can have very different copper content. Inspection is how the market turns that variability into agreed facts: how much material there is, what grade it is, whether it's safe, and what it's worth.

Most disputes in scrap trading come down to three questions: How much? (weight), What is it? (grade and quality), and Who decides? (which inspection is final). The terms below answer those questions.

Part 1: Types of Inspection

Inspection. The examination of scrap to verify that it matches the agreed description, grade, quantity and safety requirements. It can take place at the seller's yard, during loading, at the port, or at the buyer's facility.

Pre-Shipment Inspection (PSI). Inspection carried out before material is shipped, usually at the seller's yard or loading point. The inspector checks grade, quality, quantity, contamination, radiation and packing, then issues a certificate. Many importing countries require PSI for scrap imports.

Loading Supervision. Inspection during the physical loading of trucks, rail wagons, containers or vessels. The inspector confirms that the material loaded matches the agreed grade and that no prohibited items are included, and typically records photos, video, container numbers and seal numbers.

Stuffing Inspection / Container Stuffing Report. A specific form of loading supervision for containers, documenting what was loaded into each container, how full it was, and the seal applied afterwards.

Discharge Inspection / Unloading Inspection. Inspection when material arrives at the destination, typically as it's unloaded at the buyer's yard or port. Buyers use it to confirm grade and quality and to document any claims.

Joint Inspection. Inspection carried out with representatives of both buyer and seller present, often used to resolve a dispute or before accepting a claim.

Third-Party Inspection (TPI). Inspection by an independent company, not controlled by either buyer or seller. Third-party inspectors provide neutral evidence that both sides can rely on.

Surveyor. The person or company carrying out an independent inspection. In international trade, well-known inspection and testing companies act as surveyors for weight, quality and radiation.

Umpire / Umpire Inspection. A neutral third party appointed to settle a disagreement when the buyer's and seller's inspection results differ. The umpire's result is usually binding, with costs often borne by the party whose result was furthest from the umpire's.

Random Inspection / Spot Check. Inspection of a portion of a lot or a selection of loads, rather than every piece, used when full inspection isn't practical.

Hold Inspection. For bulk vessel shipments, inspection of the ship's cargo holds before loading to confirm they're clean, dry and suitable for scrap.

Part 2: Weight Terms

Gross Weight. The total weight of a vehicle or container including the scrap.

Tare Weight. The weight of the empty vehicle, container or packaging.

Net Weight. Gross weight minus tare weight: the weight of the scrap itself. This is usually the basis for payment.

Weighbridge / Truck Scale. A large scale used to weigh loaded and empty vehicles. Certified, calibrated weighbridges are the standard for commercial scrap weighing.

Weighbridge Ticket / Weight Slip / Scale Ticket. The printed record showing gross, tare and net weights, date, time, vehicle number and scale identity. It's one of the most important documents in any scrap transaction.

Certified Scale. A scale that has been tested and approved by a relevant authority and is regularly calibrated. Weights from uncertified scales are easy to challenge.

Weight Certificate. A formal document, often issued by an independent surveyor, certifying the weight of a shipment.

Draft Survey. A method of calculating the weight of bulk cargo on a vessel by measuring how deep the ship sits in the water (its draft) before and after loading or discharge, corrected for water density, ballast, fuel and other factors. Used for bulk scrap shipments.

VGM (Verified Gross Mass). Under international maritime safety rules (SOLAS), the shipper must declare the verified gross mass of each packed container before it's loaded onto a ship. VGM is a safety requirement, not a commercial weight settlement, but it's often referenced in scrap exports.

Wet Weight / Dry Weight. Wet weight includes moisture; dry weight excludes it. Some contracts, especially for turnings, sludges or specialty materials, settle on dry weight after moisture testing.

Moisture Deduction. A reduction in paid weight to account for water in the material.

Weight Tolerance. An agreed acceptable difference between the loading weight and the discharge weight, often expressed as a percentage.

Weight Franchise. A threshold below which weight differences are ignored. For example, with a 0.5% franchise, differences up to 0.5% don't trigger a claim; only differences above it do.

Shortage / Short Weight. When the weight received is less than the weight invoiced. Shortages beyond the agreed tolerance or franchise can lead to claims.

Final at Loading / Final at Discharge. Contract terms deciding whose weight (and quality) is binding. Final at loading means the weight and quality determined at the loading point are final for payment. Final at discharge means the buyer's weight and quality at destination are final. This single term can decide the outcome of most disputes, so it's essential to agree it clearly.

Part 3: Quality and Grade Terms

Grade. The classification of scrap based on material type, size, thickness, cleanliness and composition, such as HMS 1, shredded, bare bright copper, or 304 stainless.

Specification (Spec). The detailed description of what a grade must contain and exclude. Common references include ReMA (formerly ISRI) specifications in North America, the EU-27 steel scrap specification in Europe, and Japanese scrap grades, often supplemented by buyer-specific requirements.

Conforming / Non-Conforming Material. Conforming material meets the agreed specification; non-conforming material doesn't.

Downgrade. Reclassifying material to a lower grade because it doesn't meet the agreed specification, usually at a lower price.

Rejection. Refusal to accept a load or part of a load because it doesn't meet the specification or contains prohibited items.

Contamination. Any unwanted material mixed with the scrap, such as dirt, concrete, wood, plastic, rubber, oil or other metals.

Foreign Material / Non-Metallics. Non-metal content in a load, such as soil, stones, plastic, glass, fabric or wood.

Attachments. Non-scrap or different-metal items fixed to scrap, such as steel screws on copper fittings or rubber on aluminium.

Free of / Free From. A contract term specifying what the scrap must not contain, such as "free of sealed containers, oil, and non-metallics."

Prohibited Items. Items that must never be included, such as explosives, sealed or pressurised containers, radioactive material, hazardous waste, batteries (in ferrous scrap), and asbestos.

Oversize / Undersize. Pieces that exceed the maximum dimensions allowed by the specification (oversize) or are too small (undersize, sometimes called fines).

Fines. Very small particles, dust or powder, which often have lower value and higher losses.

Thickness. A key parameter for ferrous grades, such as HMS 1 typically requiring a minimum thickness.

Bulk Density. Weight per unit volume of loose scrap. Affects furnace charging and transport efficiency.

Coated / Galvanised / Painted. Scrap with surface treatments that may affect its grade and value.

Oxidation / Rust. Surface corrosion that reduces metallic yield. Heavy rust can lead to deductions.

Residuals / Tramp Elements. Elements in ferrous scrap, such as copper, tin, nickel, chromium and molybdenum, that are difficult to remove during steelmaking and can affect steel quality.

Mixed / Commingled. Scrap containing multiple grades or metals together, usually valued at the lowest grade present.

Part 4: Testing and Analysis Terms

Magnet Test. A simple test to separate ferrous (magnetic) from non-ferrous or austenitic stainless (non-magnetic or weakly magnetic) material.

Spark Test. Grinding a metal and observing the spark pattern to roughly identify types of steel.

XRF (X-ray Fluorescence). A handheld or benchtop technology that identifies the elemental composition of metals quickly. Widely used for stainless steel, alloys, copper alloys and aluminium alloys.

LIBS (Laser-Induced Breakdown Spectroscopy). A technology that uses a laser to analyse composition, including some light elements that XRF struggles with.

OES (Optical Emission Spectrometry). A laboratory-grade method for precise chemical analysis of metal samples.

Sampling. Taking a portion of a lot to represent the whole for testing. How samples are taken is critical to fair results.

Representative Sample. A sample that accurately reflects the overall composition of the lot.

Composite Sample. A sample made by combining portions from many parts of a lot.

Drill Sample / Saw Sample. Samples taken by drilling or cutting pieces, often used for ingots, castings or alloy scrap.

Melt Test / Melt Sample. Melting a sample lot to measure yield and chemistry. Often used to verify supplier quality for ferrous and non-ferrous scrap.

Assay. Laboratory analysis to determine the precise metal content of a material, especially precious metals, catalysts, e-waste and high-value non-ferrous scrap.

Split Sample. A sample divided into portions: one for the buyer, one for the seller, and often one retained for umpire testing.

Retained Sample / Reference Sample. A sealed sample kept for future verification in case of disputes.

Splitting Limit. In assay-based contracts, the maximum difference between buyer and seller assays that will be split (averaged) rather than sent to umpire. Differences larger than the splitting limit go to umpire assay.

Umpire Assay. An independent laboratory's assay used to resolve disagreements between buyer and seller results.

Recovery / Yield. The percentage of usable metal obtained from scrap after processing or melting. For insulated wire, recovery refers to the copper percentage after stripping.

Melt Loss. Metal lost during melting through oxidation, slag and other factors.

Dross. Oxidised metal skimmed from the surface of molten non-ferrous metals, especially aluminium. High dross indicates lower quality or dirtier scrap.

Payables. In assay-based trading, the percentage of contained metal value paid to the seller, after the buyer accounts for processing and refining.

Treatment Charges / Refining Charges. Processing costs deducted from the value of assay-based scrap.

Decanning (Catalytic Converters). Removing the ceramic catalyst material from the converter shell for sampling and assay.

Part 5: Safety and Radiation Terms

Radiation Inspection / Radiation Survey. Checking scrap for radioactive contamination using handheld detectors or portal monitors. A standard part of scrap inspection worldwide.

Radiation Certificate / Radiation-Free Certificate. A document certifying that a shipment was checked and found free from radioactive contamination above acceptable limits. Commonly required for scrap exports and imports.

Portal Monitor. A fixed radiation detection system that vehicles drive through at yard, mill or port entrances.

Background Radiation Level. The natural radiation level in the environment, used as a reference when measuring scrap.

Orphan Source. A radioactive source that has escaped regulatory control and may end up in scrap. Melting one can contaminate an entire plant.

NORM (Naturally Occurring Radioactive Material). Materials, such as some oil and gas pipes, that may carry naturally occurring radioactivity and require special handling.

Explosive-Free Certificate / Non-Explosive Certificate. A certificate confirming scrap has been checked and contains no explosive or ammunition items. Often required for military, shredded or mixed scrap.

Non-Hazardous Declaration. A statement that the scrap doesn't contain hazardous waste as defined by relevant regulations.

Sealed Container Inspection. Checking for closed cylinders, drums, tanks and pressure vessels that could explode when melted.

Part 6: Container and Shipping Inspection Terms

Container Number. The unique identification number of a shipping container, recorded during inspection.

Seal Number. The unique number on the security seal applied to a container door after loading. Matching seal numbers at loading and discharge help prove the container wasn't tampered with.

Loading Photos / Loading Video. Photographic and video evidence of material being loaded, the container before and after loading, and the seal being applied. Widely used as proof in disputes.

Tally Sheet. A record of items, bales, bundles or packages loaded, counted during loading.

Packing List. A document listing the contents of each container or shipment, including weights and packaging.

Bill of Lading (B/L). The shipping document issued by the carrier, acknowledging receipt of goods and serving as a document of title.

Certificate of Origin. A document stating the country where the goods originated. Important for customs, tariffs and increasingly for traceability.

Fumigation Certificate. Required in some cases when wooden packaging or pallets are used, to meet plant health rules.

Pre-Shipment Inspection Certificate (PSIC). A certificate issued by an approved inspection agency confirming that scrap meets import requirements. Some importing countries, including India, require imported metal scrap to be accompanied by a PSIC from a government-recognised agency.

Inspection Certificate. A general term for the formal document issued after inspection, describing findings on quality, quantity, radiation and compliance.

Part 7: Commercial and Claims Terms

Incoterms. Internationally recognised trade terms, such as FOB, CFR, CIF and DAP, that define responsibilities for delivery, costs and risk transfer. They affect where inspection takes place and who pays for it.

Quality Claim. A formal complaint by the buyer that material doesn't match the agreed specification, usually requesting a price reduction, replacement or return.

Weight Claim. A formal complaint about weight shortage beyond agreed tolerances.

Claim Period / Notice Period. The time within which a buyer must raise a claim after receiving goods. Claims after this period are usually not accepted.

Deduction. A reduction in weight or price to account for contamination, moisture, oversize, attachments or other quality issues.

Price Differential. The price difference applied when material is downgraded to a lower grade.

Dispute Resolution. The agreed process for resolving disagreements, which may include joint inspection, third-party survey, umpire testing, mediation or arbitration.

Arbitration. A formal dispute resolution process where an independent arbitrator or tribunal decides the outcome, often under recognised trade association or international rules.

Letter of Credit (LC) Documents. In LC-based deals, payment depends on presenting specific documents, often including inspection certificates. If inspection documents don't match LC terms exactly, payment can be delayed or refused.

Inspection Costs. Fees for inspection services. Contracts should state who pays for pre-shipment inspection, loading supervision, discharge inspection and umpire tests.

Part 8: Compliance and Traceability Terms

Chain of Custody. Documentation showing who handled scrap at each stage, from generation to final recycling.

Traceability. The ability to track scrap back to its origin, increasingly important for carbon rules, recycled content claims and customer requirements.

Certificate of Recycling. A document confirming material was recycled by a legitimate facility, often requested by generators for compliance and sustainability reporting.

Certificate of Destruction. A document confirming secure destruction of materials, especially data-bearing electronics.

Prior Informed Consent (PIC). Under international hazardous waste rules like the Basel Convention, certain shipments, including e-waste, require the consent of importing and transit countries before shipping.

Seller Identification Records. Records of who sold scrap, required in many jurisdictions to prevent metal theft.

How Inspection Terms Appear in a Contract

Here's a simplified example of how several terms come together in a scrap contract clause:

"Material: HMS 1&2 80:20 per ReMA specifications, free of sealed containers, non-metallics and radioactive material. Pre-shipment inspection and loading supervision by an independent surveyor at seller's cost. Weight and quality final at loading port as per surveyor's certificate. Radiation-free certificate required. Container and seal numbers, loading photos and video to be provided. Buyer may raise quality claims within 15 days of discharge, supported by joint survey. Weight tolerance ±0.5%."

In this example, the seller benefits from "final at loading," because the independent surveyor's findings at loading decide payment. If the contract instead said "final at discharge," the buyer's inspection at destination would decide, shifting risk to the seller. Always read these terms carefully.

Practical Tips for Sellers

Agree "final at loading" where possible, especially for international deals, backed by an independent surveyor.

Document everything with weighbridge tickets, photos, video, container and seal numbers.

Know your grade and prepare material to specification before inspection.

Remove prohibited items and contamination to avoid rejections and deductions.

Keep retained samples for high-value, assay-based materials.

Clarify claim periods and procedures in writing so buyers can't raise late or unsupported claims.

Practical Tips for Buyers

Specify clearly what grade, contamination limits and prohibited items apply.

Require independent inspection for new suppliers and international shipments.

Screen for radiation at every entry point, regardless of certificates.

Protect sampling integrity with separation of duties, retained samples and umpire provisions.

Document discharge inspections with photos and weights so claims are well supported.

Understand LC requirements so inspection documents match exactly.

Common Mistakes

Not agreeing where inspection is final. This is the root of countless disputes.

Relying on uncertified scales. Weights become easy to challenge.

Skipping photos and seal records. Without evidence, it's one side's word against the other.

Vague specifications. Terms like "good quality" invite disagreement.

Missing required certificates. A missing radiation certificate or PSIC can leave cargo stuck at port.

Ignoring claim deadlines. Late claims are usually rejected; early documentation matters.

Quick Reference: Essential Inspection Documents

Document	Purpose
Weighbridge ticket	Records gross, tare and net weight
Inspection certificate	Confirms grade, quality and quantity
Radiation-free certificate	Confirms no radioactive contamination
Pre-shipment inspection certificate (PSIC)	Meets importing country requirements
Explosive-free certificate	Confirms no explosive items
Loading photos and video	Evidence of material and loading
Container and seal numbers	Proves container integrity
Packing list	Lists contents and weights
Bill of lading	Shipping document and title
Certificate of origin	Confirms origin for customs and traceability
Assay report	Confirms metal content for high-value materials

Trade with Confidence on scrapTrade

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Ready to trade scrap with clearer terms and fewer disputes? Join scrapTrade today.

Final Thoughts

Inspection is the backbone of trust in the scrap business. Understanding terms like pre-shipment inspection, net weight, weight franchise, final at loading, representative sample, umpire assay, radiation certificate and seal number helps you negotiate better contracts, avoid costly disputes and get paid fairly.

Learn the vocabulary, write it into your contracts, document every step, and you'll trade with far more confidence, whether your scrap is going across town or across the world.