The SGS Inspection Guide: What “Quality and Quantity at Loading” Actually Means
The Bridge of Trust in International Trade
In international trade, you cannot physically see the product you are buying. Scammers exploit this by shipping containers filled with sand, flour, or low-grade brown sugar while charging you for premium refined sugar. In the 2026 market, the only bridge of trust between a buyer in London and a seller in Brazil is the SGS inspection in sugar trade protocols.
Société Générale de Surveillance (SGS) serves as the industry standard for independent verification. However, an inspection report is only a shield if you know exactly what to look for, when it was issued, and how to verify its authenticity. This guide deconstructs the 2026 standards for quality and quantity verification.
An SGS inspection in sugar trade verifies that the cargo meets the contract’s chemical specifications (Quality) and weight requirements (Quantity). For payment under a Letter of Credit (DLC), the inspection must occur at the Port of Loading, as the resulting certificate is a mandatory document for the bank to release funds to the seller.
1. What is SGS?
SGS is the global leader in inspection and certification. In the sugar trade, they act as the neutral third party that prevents fraud. Their 2026 inspection process involves two distinct pillars:
- Quantity Verification: They perform a “tally” (counting bags) or a “draft survey” (measuring ship displacement) to confirm the exact tonnage loaded—crucial for bulk 12,500 MT+ orders.
- Quality Testing: They pull random samples from the production stream or the bags, testing them in ISO-certified labs to ensure they meet ICUMSA 45 standards.
Manager’s Takeaway: Never accept a contract that allows “Seller’s Internal Report.” Always mandate “SGS or equivalent First-Class Surveyor (e.g., Bureau Veritas, Intertek).”
2. Loading vs. Discharge: The Risk Transfer
The location of the SGS inspection in sugar trade dictates who is liable for the results and when the money changes hands.
Inspection at Port of Loading (Seller’s Obligation)
This is the standard requirement for 2026. The seller must prove they put “good sugar” on the vessel to trigger payment under the Letter of Credit.
- Who Pays: The Seller.
- Effect: Mandatory for cashing the DLC.
Inspection at Port of Discharge (Buyer’s Safety Check)
This occurs when the ship arrives at your destination. It verifies if damage occurred during transit (e.g., sea water ingress).
- Who Pays: The Buyer.
- Effect: Used for insurance claims, not for stopping the seller’s payment (which has already happened).
3. How to Read the Report: The “Big Three” Chemical Specs
When you receive the analysis, the SGS inspection in sugar trade report will list several metrics. For ICUMSA 45, three values are non-negotiable:
| Metric | 2026 Standard Requirement | Why It Matters |
|---|---|---|
| Polarization | Min 99.80% | Measures sucrose purity. Below 99.80% is no longer refined sugar. |
| Moisture | Max 0.04% | Prevents “caking” (clumping). High moisture ruins shelf life. |
| Ash Content | Max 0.04% | Measures mineral impurities. High ash turns the sugar grey. |
4. Red Flags: The “Recycled Report” Trap
Scammers often send a legitimate SGS report from a shipment made two years ago to mimic “Proof of Past Performance.”
- The Date: Ensure the inspection date aligns with your current loading window.
- The Vessel: The report must name the vessel currently assigned to your voyage.
- The QR Code: Modern 2026 reports include a QR code. Scan it to verify the data directly on the SGS “e-certificate” portal. If it doesn’t scan, it’s a forgery.
5. The Verity Deal Quality Protocol
At Verity Deal, we act as a secondary layer of protection. Our protocol includes:
- Independent Confirmation: We don’t just look at the PDF; we contact the issuing SGS office in Brazil to confirm the report number is in their system.
- Sampling Oversight: For high-volume contracts, we can arrange for a “Witnessing Surveyor” to oversee the SGS team, ensuring no tampering occurs at the port.
- Radiation and Health Specs: We ensure the analysis includes CS-137 radiation limits and Phytosanitary certification required for your specific destination country.
6. Frequently Asked Questions
Can I use a surveyor other than SGS?
Yes. Bureau Veritas (BV), Intertek, and Cotecna are all globally recognized. Refineries may have a preferred surveyor based on their specific port terminal.
What happens if the SGS report fails at loading?
The bank will refuse to pay the Letter of Credit. The seller must replace the cargo or the deal is cancelled. This is why the DLC is the safest mechanism for buyers.
Is the SGS report the same as a Phytosanitary Certificate?
No. The SGS report is a commercial quality check. The Phytosanitary Certificate is a government document (issued by the Ministry of Agriculture) confirming the cargo is free of pests and safe for human consumption.
