How to check a supplier in China before you pay

Confirm who the company is

Every company in China has a business license with an 18-character unified social credit code. The name, the code, the date it was set up, its status and its business scope can be checked in China's official National Enterprise Credit Information Publicity System. The company name on the license should match the one on the proforma invoice, the contract and the bank account. The registry is in Chinese and is often slow or unreachable from outside China; in that case, ask the supplier for a copy of the license and have someone you trust in China check it.

• Chinese name and 18-character credit code
• Date of registration and current status
• Business scope: manufacturing, or trading only?
• Same name on proforma, contract and bank account

Factory or trading company: both work if you know which one it is

A trading company can be useful for small orders and mixed products, because it gathers items from several factories. A factory usually offers better price and more control once volumes grow. What matters is knowing who you deal with. Ask for the factory address, which processes are done in-house and what is outsourced, and request a video call walking the production line. A trading company that says it is a factory is a warning sign.

• Address and photos of the production line
• In-house and outsourced processes
• Video call during production
• Visit or audit by someone you trust

An approved sample becomes a specification

Approve a sample, photograph it and keep one unit with you and one sealed at the factory. Then write the specification: material, dimensions, weight, color, finish, packaging, labels, carton marks, units per carton and accepted tolerances. Include what Brazil requires: product information in Portuguese, and Inmetro or Anatel certification, or Anvisa regularization, when the product requires it. Disputes are settled by the specification, not by memory.

• Material, size, weight and color
• Packaging, labels and carton marks
• Tolerances and what counts as a defect
• Brazilian labeling and certification

Lead time, payment and contract

A common arrangement is a deposit to start production and the balance before shipment, after inspection; for larger amounts, a letter of credit is an option. Write down the Incoterm, the lead time, how defects are handled and who pays for a second inspection. Avoid paying 100% upfront to a new supplier, paying into personal accounts or accepting bank details changed by email without confirming them by phone or video with a known contact. The invoice must state the real value of the goods: under-invoicing is illegal in Brazil and carries a fine of 100% of the price difference, and falsified documents can lead to the loss of the goods.

Inspection before shipment

The decisive check happens at the factory, before the goods are loaded. A sample inspection based on acceptance quality limits (AQL, ISO 2859-1) checks quantity, appearance, dimensions, function, packaging and labels, and produces a report with photos. Pay the balance only after the report is approved. For a full container, supervising the loading adds another layer of control.

• Quantity and assortment
• Appearance, size and function
• Packaging, labels and carton strength
• Photo report before the balance is paid

Documents that must match

Customs clearance in Brazil checks the documents against each other and against the goods. The commercial invoice, the packing list and the bill of lading must describe the same product, quantity, weight and value, and the description must be detailed enough to support the NCM. Ask the supplier to send drafts before shipment, so errors are corrected in China and not at the port.

• Commercial invoice with the real value
• Packing list with cartons, weights and volume
• Bill of lading consistent with both
• Product description detailed enough for the NCM

Warning signs

Any of these signs is a reason to slow down and check again before paying.

• Price far below every other quote
• Refusal to show the factory or join a video call
• Pressure to pay quickly
• Different company names on different documents
• No sample, or a sample different from the product
• Payment requested into a personal account

How XT Brazil helps

In a full purchase, XT Brazil's team in China finds and compares factories, handles samples, follows production and inspects the goods at the factory before loading. You buy from a Brazilian company, pay in reais and receive the goods with a Nota Fiscal. If you already have a supplier, we inspect, ship in the monthly shared container and clear customs with our own team.