Some clients were scammed and lost lot of time and money even if they had inspected them in person before placing the orders. What do you have to know when you are inspecting a supplier in China? Here are the tips:
1.Take a photo of their Business License, then check out their business scope with local officials in China, by this way you will find out whether they are the real factory or not. On their Business License, you can also find out who the real boss is and what they can do in China legally. 90% of the suppliers you met online might be typical trade companies, if you know nothing about Chinese, any trade company, individual agents or even scammers can take you to a factory that has nothing to do with them in China. On their Business License, you can also find out their company size, business address, business scope and legal representative etc.
2.Take a photo of their factory gate and write down their factory address, then you have to check whether their registered address on their Business License is the same address you inspected in China. This is also very important as when you have to take any legal action against them during any future trade dispute, the first step is to confirm their business address and business scope here in China. If they use a 'fake’ business address, then you cannot sue them in China, please be careful on such cases.
3.Check out the local market price and confirm the right FOB price with them in person, if their price is too low to be true, then you have to forget it.
Also please note that you cannot buy any international brand of items from the factories in China directly. For example, all the Apple iphones are made in China but you cannot buy iphones from their factories directly and you can only buy from their authorized distributors at your end. This is the same case to any other international brands, say, Sumsung, LG, Sony etc.
4.Inspect their equipment and facilities.
The advanced equipment and facilities is a kind of guarantee (prerequisites) for high quality product here in China.
5.Check out their quality control measures in written form
Lots of Chinese suppliers only offer you ‘mouth quality measures’and very few suppliers have quality measures in written forms. Please bear it in mind that any qualified supplier must have a good QC system in China as well.
6.Check out their export experience and export qualifications
No supplier will tell you their customer information but the client can ask them for their Export License, if their Export License was issued 10 years ago, I'm sure they have enough experience in exporting in China.
7.Check out their after-sale measures
Some clients only focus on lower prices, however, safety, price, quality, and after-sale service play the same role in doing international business in China.
8.Try to meet the "real boss" in person during your inspection
Do not forget to check out their Business License and meet the real boss in person, then all your trade terms, lead time and payment terms etc can be guaranteed.
STIN has rich experience in sourcing and auditing local suppliers from China, any question is welcome.
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