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You should request 7 documents from the Chinese supplier

You should request 7 documents from the Chinese supplier

by · 10/13/2020, 7:06:58 AM

Chinese companies generally display dozens of certificates in exhibition halls or on websites, but many of them are irrelevant. In this article, we will focus on the seven most important Chinese supplier documents that you should pay attention to.

Why do you need Chinese supplier documents? Asking your Chinese supplier to provide some important registration documents is a simple but effective form of due diligence. The companies you are working with will be happy to provide these Chinese supplier documents. Verifying their authenticity will give you the confidence to deal with trusted companies. On the other hand, if the Chinese supplier is unwilling to provide you with these simple documents, or worse, they provide you with forged documents, this is a clear sign that you should move your business elsewhere .

When dealing with any Chinese certificates and documents, always be alert to the possibility of forgery. For example, the phenomenon of forging business licenses is quite common in China. From Photoshop to hard-to-find "adjustments", there are many documents from Chinese suppliers. You should always ask for one, the others are necessary under different circumstances. In all cases, it is important to verify the authenticity of the certificate.

1. Chinese name of business license: business license.

Purpose: To prove that the company is legally registered in Mainland China. All companies in Mainland China must be registered and have a business license, and an 18-digit business license number must be assigned through the business license. Therefore, any resistance by Chinese suppliers to providing copies can serve as a useful warning signal. After receiving the certificate, please double check. In addition to discovering many fakes, we have also encountered many cases, providing business licenses in offshore jurisdictions such as Hong Kong or the British Virgin Islands or the Cayman Islands.

2. Account opening permit.

Purpose: To obtain the detailed information of the company's official bank account in Mainland China, only paying for the account shown on the licensed bank account certificate of the Mainland China company can avoid more blatantly proving that they are the real holder of the commercial bank account shown on the certificate Person, and you can be sure that the payment from the account will actually be transferred to the company, which ensures that the payment will not be transferred to a personal account or offshore account that may "disappear" the funds. In addition, there are more protections and restrictions on licensed commercial bank accounts, so you are safer in this regard. However, there are some caveats. Most domestic companies open multiple bank accounts, such as handling different currencies or different aspects of business. In this case, it is likely that only one account is associated with it. There is nothing wrong with this situation. More importantly, you should always pay to a domestic corporate account, not a personal account.

3. Chinese name of the foreign trade registration certificate: foreign trade operator registration form.

Purpose: To ensure that the company has registered for foreign trade and confirm its official English name. Companies directly engaged in import and export business need China's foreign trade registration certificate. Therefore, if your Chinese supplier does not have this certificate, you can use a trading company to send your products. Although it is not necessarily a problem, it is something that needs attention. As part of the registration process, when registering with the Ministry of Commerce, the company must designate its English name for foreign trade. In this case, the English name should correspond to the name on the bank account you want to pay.

4. ISO9001 certificate Chinese name: ISO9001 quality management system certificate (but usually provide English certificate)

Objective: To ensure that the organization has a certified quality management system that covers the products you buy. Request copies of products from Chinese suppliers. Before placing an order, ISO9001 certification is a very useful measure. The ISO9001 certificate shows that Chinese companies have implemented appropriate systems in quality management, management responsibility, resource management, product realization, measurement, analysis and improvement... (or at least convince auditors that they have appropriate systems in these areas), And issued an ISO9001 certificate applicable to a specific scope, which determines the products and services covered by the certificate. This is very useful for determining whether the supplier actually produces the product you need. It also includes the company name with English name, which can be compared with the name given on the foreign trade registration certificate. As usual, there is the possibility of cheating, and the certificate is not enough. You need to determine the ISO9001 registrar that has been granted the certificate (will be given in the document), and independently confirm with the registrar that the company has obtained the real certification. It is also important to confirm at which site the supplier has actually obtained ISO9001 certification. They may be certified by some factories, but not by other factories. In addition, it is wise to confirm that the registrar that issued the certificate is recognized.

5. Chinese name of customs registration certificate: Customs declaration registration certificate of consignee of import and export goods.

Purpose: To determine whether the company is registered to declare to China Customs. Although the customs registration certificate is often confused with the foreign trade registration certificate, the purpose of this certificate is actually different. This certificate is provided to Chinese suppliers registered and declared by the Chinese customs. Most large manufacturing companies will have this certificate, but many small companies will use brokers to assist in this process. Compared with foreign trade registration, companies have much less of this certificate, but in order to better understand their abilities, it is still useful to ask for it.

6. Test report: test report (but Chinese test report is usually provided in English)

Purpose: Prove that the purchased product meets the required standards and requirements depending on the product you ordered. You may need a product test report from a Chinese supplier (preferably in multiple stages of the production process) to confirm whether your product meets the standards you require, what test specifications you need, when to test, and who is determined to do it everything. Be careful with suppliers who try to show product test certificates for other products that interest you. In addition, there are some product testing issues that importers ignore, and ignoring it can be a costly mistake. If you import products made in China into your own country, you will most likely need certification to prove that your products meet the relevant standards of your country. Many types of products require this certification, and electronics and toys are common examples. Products must be tested before shipment, and the customs officials in your country will request proof. The lack of required specific product test certificates may mean that even if your product arrives in your country, you will never be able to obtain your product, and the only responsible party will be you. So it is not recommended that you rely on Chinese suppliers. You can obtain the certificates required to import specific products into your country, or even if you know which product test certificates are required, you should confirm that you have as many certifications as possible by learning the necessary product test certificates and having a third party The product. As always, be wary of fraud: make sure that the certification is performed by an approved third party, and independently confirm the certification and approval with the next organization from the previous organization.

7. Proforma invoice name Chinese form: (form is almost always provided in English)

Purpose: to ensure payment to the correct company amplifier; bank account, all details provided are consistent. This is the file that your Chinese supplier is most willing to provide you! Even if there is a better solution, it is prepared by the supplier, usually Microsoft Excel or Word. Check whether the name on the invoice matches the name of the company you think you are trading. The account number you need to pay (preferably the same as the bank account certificate), the English name on the foreign trade registration certificate, the ISO9001 certificate and the test report (if applicable) should be paid by another company. Please be very careful. Also carefully check the contents of the proforma invoice to ensure the correct description of the product and guarantee of payment terms. Don't be afraid to ask for changes-it is easier to do before payment than after payment!

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