Do Your Due Diligence
Placing a manufacturing order with a Chinese factory can save 20–50% compared to domestic suppliers. But skipping due diligence can turn those savings into losses. Here are 7 things you must verify before sending a deposit.
1. Verify the Factory Exists
Ask for a live video call showing the production floor. Google Maps satellite view can confirm the building exists. A factory audit — either by your team or a trusted third party — is the gold standard.
2. Check Export Licenses and Certifications
Does the factory hold relevant certifications (ISO 9001, CE, FDA)? Are they authorized to export to your country? Ask to see certificates with matching company names.
3. Request Production Samples
Always get a pre-production sample before committing to bulk. Compare it against your specification sheet. If the sample is not right, neither will the production run be.
4. Clarify Payment Terms
Standard terms are 30% deposit, 70% before shipment. Never pay 100% upfront. Use secure payment methods — T/T with a verified bank account, or trade assurance platforms for smaller orders.
5. Define QC Standards in Writing
Write down exactly what constitutes an acceptable product: dimensions, tolerances, materials, surface finish, packaging. Attach photos. This document becomes your QC checklist.
6. Arrange Pre-Shipment Inspection
Hire a third-party inspection company (or use your sourcing agent) to check goods before they leave the factory. Fixing problems at the factory costs pennies; fixing them after shipping costs thousands.
7. Understand Incoterms
FOB, CIF, DDP — know who pays for what. FOB means the factory loads goods onto the ship; you handle the rest. DDP means the factory delivers to your door. Each has cost and risk implications.
At Pamin, we handle factory audits, sampling, QC, and logistics for our clients — whether they are buying our brushes or sourcing other products through us. Tell us what you need.
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