How to Verify your Chinese Suppliers? How to Check for Reputable Chinese Manufacturers?
Importing products from China for your own brand, to sell on Amazon or to use as raw material for production is almost a standard worldwide. China is the largest trading and manufacturing country at relatively lower prices.
However, without verification of suppliers, this might cost you more with too good to be true promises and the inability to supply the quantity or quality at a given time. These hidden costs can cause damage to your business and brand. There have been cases where the so-called suppliers were actually “scammers’ or trading companies that pose as manufacturers to attract more customers.
You know it is critical to check for legitimacy before placing orders, especially if in bulk or large shipments. Without proper checking, your company is at risk with “fly-by-night” suppliers or intermediaries posing as manufacturers.
Here are some tips on how to verify a Chinese supplier:
- Ask your supplier for their business registration or license to operate. Like in any country, Chinese businesses are regulated through licensing and registration to operate. Look at their license for an 18-digit business license number. The 18-digit number represents the Government Authority issuing the license, the location, type of business, and the unique registration number sequence for the company. Another feature of the license is the QR code that you can use to verify a Chinese agency to see if it is a legitimate manufacturing business. Also, look into the date of registration and expiration of the license.
- Another checkpoint for legitimacy is The Administration for Industry and Commerce or AIC. This is a national Chinese organisation with local chapters per region in China of the official records of Chinese manufacturers. Check for their business license at AIC official website - http://www.gsxt.gov.cn/
- Ask Chinese suppliers for their ISO 9001 certification. This Quality Management System records processes, procedures, and responsibilities for reaching quality policy goals and objectives. They coordinate and direct a manufacturer’s activities to meet clients and regulatory requirements, such as improving efficiency and effectiveness. Look at their certification for product scope, issuance, and expiration dates. You can also inquire about a supplier’s certification at SAC or Standardisation Administration of the People’s Republic of China, and CNCA or Certification and Accreditation Administration of the People’s Republic of China. One hurdle you are going to face with these authorities is that most licensing and regulation certifications are in Chinese. You will need a good translator for this.
- Ask suppliers for customer references, such as those they have worked with or are currently supplying in other countries. This is one of the easiest ways to verify their credibility and ability to meet your orders.
- Most importantly is to build a long-term and trusting relationship with your supplier by actively staying connected via video calls, and chats. Treat them kindly, wish them “Happy Chinese New Year” during the holidays. However, always make it a point that all transactions and obligations of both parties are met on time including promises such as payments and delivery.
If you are looking for a long-term reliable Chinese supplier and want to commit to a specific one, have them audited by a third party or by GlobalTQM. This would include a full-scale audit of their licenses and registration from regulatory authorities, their suppliers and customers, process and procedures, as well as HR policies and working environment.
GlobalTQM has been sourcing in China for more than 20 years. We have helped hundreds of businesses of all sizes in sourcing, developing products, testing, and protecting Intellectual Property (IP) in China.
GlobalTQM is your expert team on the ground in China 🇨🇳 .
The GlobalTQM team can facilitate your needs in China, from having a scalable satellite office to verifying the quality and legitimate sources of goods and raw material.
Click here to schedule your free call today and let us help you find a reliable supplier!