Every year, foreign buyers lose an estimated US$40M+ to fake or fraudulent Chinese chemical suppliers. The scam patterns are well-known but still trap new importers. This checklist walks you through the 15 verifications a professional sourcing agent runs before recommending a factory.
Category A: Legal Existence (Days 1-2)
1. Business License (营业执照)
Ask for a scanned copy in Chinese + English. Verify:
- Unified Social Credit Code (18 digits, ends with letter)
- Business scope includes “chemical” (化工品), “disinfectant” (消毒剂), or “manufacturing” (生产)
- Registered capital (paid-in > US$100,000 = more stable)
- Established year (< 3 years = higher risk)
- Legal representative name matches contact person or supervisor
2. Verify on National Credit Information System
Visit gsxt.gov.cn and enter the credit code. Real factories always show up with:
- Company status: existing (存续)
- Registered address matches invoice header
- Business scope listing
- Recent equity/change history
3. Alibaba Trade Assurance / Verified Supplier Status
On Alibaba.com, look for:
- Gold Supplier for 5+ years (harder to fake, requires renewal)
- Trade Assurance orders history (real transactions)
- Verified supplier badge (on-site inspection by SGS/BV)
- Response time < 24 hours
Category B: Physical Verification (Days 3-5)
4. Factory Address on Baidu/Google Maps
Search the exact registered address. Real factories have:
- Satellite view showing industrial buildings (not residential)
- Located in a designated chemical industrial park
- Address consistent across MSDS, invoice, and website
5. Video Tour of Production Line
Request live video call showing:
- Reactor vessels for chlorination
- Drying/granulating equipment
- Tablet press machine (if selling tablets)
- Packaging line (drums being filled and sealed)
- Warehouse with finished product stacked and labeled
6. On-Site Inspection Report (Third-Party)
Commission SGS or Bureau Veritas inspection (US$400-800):
- Verify factory existence and scale
- Check production capacity vs claimed
- Confirm quality control laboratory
- Review raw material inventory
Category C: Certifications (Day 5-7)
7. ISO 9001 Certificate
Verify with issuing body (CQC, SGS, BSI). Fake ISO certs are common — real ones have a QR code you can scan.
8. Export Registration
Chinese exporters must be registered with Ministry of Commerce. Look for:
- 10-digit export registration number
- Customs annual export records (公开数据)
9. Product Certifications
- NSF/ANSI 60 for drinking water applications
- BPR (EU) for biocidal products
- REACH pre-registration for chemicals
- FDA 21 CFR compliance letters (for USA)
Category D: Financial & Trade History (Day 7-10)
10. Trade Data Verification
Use import-export databases (ImportGenius, Panjiva, 52wmb):
- Historical export volume by country
- Regular customers (not just one buyer)
- Consistent shipment pattern (not seasonal spikes)
11. Company Credit Report
Purchase report from Dun & Bradstreet or Coface (US$50-200):
- Credit rating and payment history
- Litigation history (search 中国裁判文书网)
- Any tax violations or blacklist status
12. Bank Account Verification
Payment must go to a corporate account matching the business license name. Never:
- Personal account
- Third-party account (“please pay to our agent”)
- Hong Kong account when the company is registered in mainland China
- Crypto or unusual payment platforms
Category E: Contract & Trial (Day 10-15)
13. Sales Contract in Both Languages
Bilingual contract (Chinese + English) covering:
- Product specifications (available Cl %, packaging)
- Quantity, price, total value
- Delivery terms (FOB, CIF, DAP)
- Payment terms (30/70 T/T standard)
- Quality claim procedure and third-party arbitration
- Jurisdiction (CIETAC in China, ICC in Paris common)
14. Sample Order Before Bulk
Order 500 kg trial batch (LCL). Verify:
- Product matches spec on arrival
- Packaging integrity
- Documents complete and accurate
- Communication quality throughout process
15. Reference Check
Ask for 2-3 existing buyer references. Contact them independently and ask:
- How long have you sourced from them?
- Any quality issues, and how were they resolved?
- Would you recommend them for our volume?
Bonus: Signs You’re Talking to a Trader (Not Factory)
- Cannot show production video
- Address in a commercial building (not industrial park)
- Very low MOQ (< 500 kg) with fast delivery
- Prices 15%+ above factory-direct benchmarks
- Cannot answer detailed technical questions about production process
- Website has stock photos instead of real factory images
Traders are not bad — they aggregate orders for small-volume buyers. But you pay their margin. Direct-from-factory saves 10-20% on volumes > 5 tons.
Shilan Chemical Passes All 15 Points
Shilan Chemical is a licensed manufacturer in Shijiazhuang Chemical Industrial Zone, ISO 9001 certified, Alibaba Verified Supplier since 2019, with export records to 45+ countries. We welcome factory tours, third-party inspections, and reference calls. Learn more about us →