What is proof of product (POP)?
POP · Proof of Product
A set of documents offered by a seller to show that the cargo exists and is available to the buyer. What counts as proof varies enormously, and much of what circulates under the name proves nothing at all.
Key points
- A certificate of analysis proves a sample was tested, not that the seller owns the cargo.
- Only parcel-specific documents from accountable issuers are evidence.
- Refusing to send a full document set pre-contract is normal, not suspicious.
At a glance
| Requested by | The buyer |
|---|---|
| Typical contents | Certificate of origin, CoA, inspection report, tank or warehouse receipt, export allocation |
| Proves little | Photographs, undated CoAs, documents with references removed |
| Proves more | Warrants in the seller’s name, fresh third-party inspection naming the parcel |
| Better alternative | Load-port inspection as a payment condition under the LC |
What is being asked for
Proof of product is a buyer’s request for evidence that the seller has the cargo it is offering. The usual list includes a certificate of origin, a recent certificate of analysis, an inspection report, tank or warehouse receipts, an allocation or export licence, and sometimes a statement of availability from the producer.
The request is reasonable in principle. A buyer about to open a letter of credit, or to commit freight, wants to know the material exists. The difficulty is that the documents most often supplied are the ones that prove the least.
Which documents prove anything
A certificate of analysis proves that a sample was assayed. It does not prove who owns the parcel, that it is unsold, or that it is still in the tank. A certificate of origin proves where material was produced, not that this seller controls it. Photographs and videos prove nothing whatever and are trivially recycled.
What carries weight is documentation tied to a specific, identified parcel and issued by someone with a reputation to lose: a warehouse warrant or tank receipt in the seller’s name, an inspection report from SGS, Intertek or Bureau Veritas commissioned for this cargo and naming it, or an export allocation issued to the seller. Anything undated, unaddressed or with the parcel reference removed is not evidence.
Why sellers refuse, and what to do instead
Sellers resist releasing full documentation to a buyer they have not contracted with, and the reason is sound: a complete document set identifies the producer, the parcel and the logistics chain, which is precisely what an intermediary needs in order to go around the seller. Refusal is not by itself a sign of a problem.
The way through is to make the proof contemporaneous with the commitment rather than prior to it. Fresh inspection at load port by a named agency, with the certificate a condition of payment under the letter of credit, gives the buyer better protection than any document sent in advance — because it is issued after the cargo is in front of an inspector, not before.
Frequently asked questions
- Should a seller send proof of product before a contract?
- Most will not, and that is defensible. A full set identifies the producer and the parcel, which is what a broker needs to bypass the seller. Expect partial, redacted evidence pre-contract and full documentation as a condition of payment afterwards.
- Is a certificate of analysis proof that the cargo exists?
- No. It proves a sample was analysed at some point. It says nothing about ownership, whether the parcel is still unsold, or whether it remains where the certificate says. Certificates are also among the most frequently recycled documents in the market.
- What is the strongest form of proof a buyer can get?
- Inspection at load port by an agency the buyer appoints, with the certificate required for payment under the letter of credit. That ties the money to a document created after someone independent has looked at the actual cargo.
Related terms
The largest independent inspection, testing and certification company in the world, founded in 1878 and headquartered in Geneva. In commodity trade its certificates of quality and weight are what a buyer, a bank and an insurer all rely on instead of taking the seller’s word.
The laboratory document stating the measured composition of a specific parcel — purity, contaminants, moisture. It refers to the lot actually shipped, unlike a typical or datasheet analysis which describes what a plant usually produces.
The document issued by the carrier that serves as receipt for the cargo, evidence of the contract of carriage, and — critically — a document of title. Whoever holds the original endorsed bill controls the goods.
A seller’s complete offer to sell a stated cargo on stated terms, valid for a stated period. Unlike a soft offer it is meant to be firm within its validity, and it is the document a buyer can reasonably act on.
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