Factory Audit Checklist

What to verify before you commit real money to a Chinese factory — and how to do it without a plane ticket.

A factory audit is the due-diligence step between "this supplier looks promising" and "I'm placing a purchase order." It confirms the things a supplier's marketing materials and B2B listing can't: that the company is legally registered, that it actually manufactures the product (rather than subcontracting it out without telling you), and that its quality systems are capable of meeting your specification consistently, not just on the sample.

Business legitimacy

• Business license and registration number verified against China's National Enterprise Credit Information Publicity System.
• Registered company name matches the name on quotes, contracts, and the bank account you'd be paying.
• Export license confirmed, if the product category requires one.
• Years in operation and any history of ownership changes or name changes.

Production capability

• Factory owns the equipment relevant to your product — not renting floor space to present as its own line during a video call.
• Current production capacity and existing order backlog, so you understand realistic lead times rather than quoted best-case ones.
• Evidence of experience manufacturing comparable products, ideally for buyers in your target market.
• Raw material sourcing — where inputs come from, and whether that introduces its own compliance or tariff-classification questions.

Quality systems

• Documented quality control process at each stage: incoming materials, in-process, and pre-shipment.
• Relevant certifications for your category (ISO 9001 is the general baseline; product-specific certifications like CE, FCC, or CPSIA depend on what you're importing and where).
• Willingness to accommodate a third-party pre-shipment inspection before final payment — reluctance here is itself informative.
• Sample consistency: does a second, independently requested sample match the first, or does quality drift?

Social and legal compliance

• Labor practices consistent with buyer-side compliance requirements (BSCI or SEDEX audits are common reference standards for larger retail buyers).
• No indicators tying the facility to entities on restricted-party or forced-labor enforcement lists — worth checking directly given active US enforcement under the Uyghur Forced Labor Prevention Act.
• Clear agreement on intellectual property: who owns tooling, molds, and any custom design work, and in writing.

Desktop review vs. a paid third-party audit

For smaller or lower-risk orders, a thorough desktop review — document verification, a live video walkthrough of the production floor, and reference checks — is often sufficient. For larger commitments, custom tooling, or your first order with a new factory, a paid third-party inspection (companies like QIMA, Asiainspection, or SGS conduct these) is worth the cost, typically a few hundred dollars for a standard factory audit. It buys an independent, on-site assessment from someone with no incentive to tell you what you want to hear.