Supplier Due Diligence & Factory Verification

Supplier Due Diligence & Factory Verification Service

How to verify a Chinese factory before you order — and how a structured verification service fits in. The sections below give you a practical buyer’s checklist you can start using today, followed by how QGO’s Supplier Due Diligence & Factory Verification service applies these checks.

Short Description

A structured supplier due diligence and factory verification service covering company background, manufacturing capability, legal risks, production qualifications, export history, product documentation, and key commercial terms.

Service Fee: US$300

This is the deeper step. Pre-visit screening answers whether a supplier is worth spending time with; due diligence answers whether to proceed further before ordering, contracting or paying. Screening does not replace this service, and this service is not a substitute for a factory audit, a QC inspection or legal and financial due diligence.

Service Overview

This service is designed for international buyers who need a preliminary and structured assessment of a potential Chinese supplier before placing an order, requesting samples, arranging a factory visit, or entering into a commercial agreement.

QGO Business will review available corporate information, supplier-provided documents, production qualifications, export records, manufacturing capabilities, and key commercial conditions.

How to Verify a Chinese Factory in 7 Steps

You do not need to be in China to begin verifying a supplier. The seven steps below combine free public records with document checks and, where useful, third-party help. They are a starting framework — not a substitute for the supplier’s own cooperation or, where warranted, an on-site audit.

1. Confirm the legal entity

Start with the legal entity behind the supplier. In China, the official source is the National Enterprise Credit Information Publicity System (gsxt.gov.cn), operated by the State Administration for Market Regulation (SAMR). A search returns the registered company name, registration status, legal representative, registered capital, date of establishment, registered business scope, and public records such as administrative penalties, the abnormal-operation list, and the serious-violation list. Confirm the name on the system matches the name on the supplier’s contract, invoice, and bank details.

2. Check the Unified Social Credit Code

Chinese legal entities and other organizations use an 18-character Unified Social Credit Code under GB 32100-2015. It appears on the business licence. Compare the code shown on the licence with the official GSXT record, and investigate any inconsistency. Checking the code is one useful step, but on its own it does not prove a supplier is legitimate.

3. Confirm manufacturer vs trading company

Registered business scope is one signal, not proof, of whether a supplier manufactures. Read it together with the registered or operating address, the production facilities, any production evidence, and the relationship between the registered company, the factory entity, and the export entity. A trading company with no production of its own can still be a legitimate and useful supplier — the goal is to know which type you are dealing with, not to treat one as automatically better or worse.

4. Review relevant licenses and qualifications

Qualifications vary by industry, so check only those that apply to your product. Examples include the SC Licence for food production, and — where relevant — ISO 22000, HACCP, GMP, or market-specific registrations such as FDA. No certificate is required for every supplier, and holding a certificate is not the same as being a reliable supplier; judge each against the product and the market it is meant for.

5. Request and verify key documents

Ask for documents and check them against public records. Useful items include the business licence, Certificates of Analysis (COAs), third-party finished-product test reports, product specifications, and export or registration filings. Documents support verification, but they are only as reliable as their source — cross-check them where you can.

6. Consider site verification or a factory audit

Where production matters, an on-site factory audit or a live video tour of the production line adds confidence that the facility exists and operates as described. This is a separate step from desk-based checks and may involve travel, a third-party inspector, or both. Confirm whether the supplier supports an on-site audit, a live video tour, and the provision of production-line photos or videos before relying on it. If you are planning supplier or factory visits around the Canton Fair, see our Canton Fair factory-visit guide.

7. Review public risk, business history, and export capability

Close the loop with verifiable history. On gsxt, review administrative penalties, abnormal-operation records, and serious-violation listings. Where available, look at export records, main export markets, and past overseas customer or brand cooperation. Public records are not complete, but clear negative signals deserve a closer look before you commit.

Documents That Help Verify a Chinese Factory

Documents help confirm what a supplier claims. Group them by purpose, and remember that having a document is not the same as being reliable — authenticity and consistency matter.

  • Business registration documents: the business licence showing the Unified Social Credit Code; a gsxt record or extract.
  • Industry-specific licences: for example, the SC Licence for food production, or other licences required by the product’s industry.
  • Product and test documentation: COAs, third-party test reports, product specifications, stability or formulation documentation where provided.
  • Export and manufacturing evidence: export registration or filing documents, production qualification certificates, and production-line photos or videos where available.

Verify documents against public records where possible, and treat missing or inconsistent documents as a reason to ask more questions — not automatic proof either way.

Red Flags When Verifying a Chinese Supplier

None of the points below proves a supplier is dishonest. Each is a signal that warrants further checking before you place an order.

  • The USCC, company name, or legal representative differs across the business licence, gsxt, and contract.
  • The supplier is reluctant to share a business licence or gsxt record.
  • The registered business scope does not include production, yet the supplier presents itself as a manufacturer.
  • gsxt shows abnormal-operation status, repeated administrative penalties, or serious-violation listings.
  • Pricing, lead times, or capabilities sit far outside the market norm with no clear reason.
  • A payment request to an unrelated personal or third-party account without a clear documented commercial explanation should be investigated before payment.

Treat these as prompts for deeper due diligence, not verdicts.

Can You Verify a Factory Without Visiting China?

Often, yes — at least to a useful first pass. Several methods work remotely, each with limits.

  • Desk research: free public systems such as gsxt.gov.cn let you confirm registration, status, and penalties without leaving your desk. It cannot confirm that a physical factory operates as described.
  • Document review: business licences, COAs, and test reports can be checked for consistency, but depend on the documents being genuine and complete.
  • Live video tour: a real-time walkthrough of the production line shows the facility and equipment, yet it is staged and limited in what it can prove.
  • Third-party verification: a local inspector or verification provider can add independent checks, but it does not replace an on-site factory audit unless the agreed scope expressly includes an on-site audit.

Remote checks reduce risk; they do not blur desk-based verification with a physical factory inspection. If you are deciding whether a supplier is worth the trip at all, start with a lighter pre-visit screen.

Related: our Supplier Pre-Visit Screening is a desk-based check that helps you decide whether a supplier is worth visiting before you travel — a different step from the formal verification below. See Supplier Pre-Visit Screening.

The checks above illustrate common areas buyers may review. QGO’s structured Supplier Due Diligence & Factory Verification service applies the desk-based and document-based checks that fall within its confirmed scope. What the service covers and delivers is set out in the sections below.

Scope of Due Diligence

1. Business Nature and Manufacturing Capability

  • Confirm whether the supplier has its own manufacturing facilities.
  • Identify and exclude suppliers operating only as trading companies without their own production workshops.
  • Review the relationship between the registered company, factory entity, and export entity where applicable.

2. Corporate Background Review

  • Company registration information.
  • Registered capital.
  • Date of establishment and operating history.
  • Registered business scope.
  • Shareholder and legal representative information where available.
  • Current company registration status.

3. Factory Scale Verification

  • Approximate factory area.
  • Size and availability of cleanroom facilities where applicable (for example, Class 100,000 / ISO Class 8 for relevant industries).
  • Number of production lines.
  • Daily production capacity.
  • Main production equipment.
  • Workforce and operational capacity where verifiable.

4. Legal and Compliance Risk Review

  • Litigation records.
  • Administrative penalties.
  • Relevant industry compliance or safety violations (for example, food safety where applicable).
  • Commercial disputes.
  • Abnormal business registration records.
  • Other publicly available legal or regulatory risk indicators.

5. Production Qualification Verification

The review will focus on the supplier’s relevant production and export qualifications, which vary by industry. Examples of qualifications QGO may verify where applicable include:

  • China Food Production License, commonly known as the SC License.
  • Verification that the licensed production scope includes Sports Nutrition Food under GB 24154.
  • ISO 22000 certification.
  • HACCP certification.
  • GMP certification or compliance documentation.
  • FDA registration information where applicable.
  • Export registration or filing documents.
  • Other relevant industry-specific manufacturing and export qualifications.

6. Export Track Record Review

  • Previous overseas customer or brand cooperation cases where available.
  • Main export countries and regions.
  • Available customs shipment records.
  • General export experience.
  • Export documentation capability.

7. Product Documentation Review

  • Raw material Certificates of Analysis, or COAs.
  • Third-party finished-product testing reports.
  • Product stability testing information.
  • Available product specifications.
  • Ingredient and formulation documentation where provided.
  • Packaging and labeling compliance documents where applicable.

8. Commercial Terms Confirmation

  • Minimum order quantity, or MOQ.
  • Indicative unit pricing.
  • Production lead time.
  • Available packaging options.
  • Private-label and customized packaging capabilities.
  • DDP door-to-door shipping feasibility.
  • Indicative DDP shipping quotation where available.
  • Sample order availability.
  • Payment terms and production deposit requirements.

9. Factory Audit Support Confirmation

  • Confirm whether an on-site factory audit can be arranged.
  • Confirm whether the supplier supports a live video tour of the production line.
  • Confirm the availability of production-line photographs and videos.
  • Identify any conditions, appointment requirements, or additional fees related to an on-site inspection.

Deliverables

The client will receive a written findings summary that may include:

  • Supplier background information.
  • Manufacturing capability assessment.
  • Qualification and certificate checklist.
  • Identified legal, operational, or compliance risks.
  • Commercial terms summary.
  • Missing or unverified documents.
  • Key questions requiring further confirmation.
  • Preliminary recommendation for the next stage of supplier engagement.

Important Service Conditions

The US$300 service fee covers preliminary desk-based due diligence, document review, supplier communication, and verification using available public records and supplier-provided information.

The following items are not included unless separately agreed and quoted:

  • On-site factory inspections.
  • Inspector travel and accommodation.
  • Independent laboratory testing.
  • Product sample purchase and shipping.
  • Paid customs databases or third-party database charges.
  • Government filing fees.
  • Legal opinions.
  • Financial audits.
  • Document notarization or legalization.
  • Certification application services.

QGO Business will use reasonable efforts to review and verify the available information. However, the service does not constitute a legal opinion, financial audit, government certification, or guarantee of the supplier’s future performance.

The completeness of the review may depend on the availability of public information, the supplier’s cooperation, and the authenticity of documents provided by third parties.

Once customized research or supplier communication has started, charges relating to completed work or costs already incurred may be non-refundable to the extent permitted under the applicable service agreement and applicable law.

Information Required from the Client

After payment, please provide:

  • Target product name and specifications.
  • Supplier company name.
  • Supplier website or marketplace link.
  • Supplier contact details.
  • Intended order quantity.
  • Destination country.
  • Required certifications.
  • Packaging requirements.
  • Target delivery schedule.
  • Any specific risks or concerns that should be investigated.

Supplier Search Support

If the client does not have an existing supplier list, QGO Business will conduct an initial supplier search and provide a shortlist of 3–5 potential suppliers for further review, comparison, and due diligence, subject to the client’s product requirements and market availability.

The shortlist is based on preliminary supplier screening and does not constitute final approval, certification, or a guarantee of the supplier’s performance. Each shortlisted supplier will still be subject to the applicable verification and due diligence process.

The estimated completion schedule will be confirmed after the required supplier and product information has been received.