China lawyer tells you how to Investigate China export suppliers

The anti-fraud work aims to safeguard the legitimate rights and interests of import enterprises, maintain the order of international trade, and promote the sound development of cross-border sale trade.In the past article ’ How to preventing the import companies from commercial fraud?’, Lawyer Xu Baotong mentioned the importance of investigating the credit standing of Chinese export companies. This article will further elaborate the methods. 

1. BSCI——for European purchasers

The European companies can require the Chinese export companies to provide the BSCI certificate. In a global marketplace, supply chains are more and more complex. It’s necessary that a Chinese company should improve visibility over their production. The code of conduct of BSCI has 11 principles, which help the business partners to observe the social performance in export companies’ supply chain. The principles include the following clauses: The right of freedom of association; No Discrimination; Fair Remuneration; Decent Working Hours; Occupational Health and Safety; No Child Labor; Special Protection for Young Workers; No Precarious Employment; No Bonded Labor; Protection of the Environment; Ethical Business Behavior.

2. SEDEX——for British purchasers

Supplier Ethical Data Exchange (hereinafter referred to as ‘SEDEX’) is a database. It storages the export companies’ basic data in regard to its principles and shares these data to the business partners (import companies). Sedex would examine the factory and face-to-face interview the workers of the export suppliers etc.

3. ISO

ISO is a certificate of products quality. According to this certificate, the import purchasers are easily to identify the products quality and enterprise management models.

4. Credit standing certificate

This official website shows the basis information of a Chinese company. The import purchasers can compare the title registered on the website with the name on the contract, check the capital whether the export can bear the export volume, and review the punishments etc.

5. Chinese Judgments online

Import companies can search the judgments relevant to the Chinese export suppliers, and then analysis the state of operation.

6. Mortgage & Pledge

Import companies could investigate the circumstance of shareholder’s equity pledge, mortgage of factory or vans, and pledge of cargoes at relevant registration departments.

7. Tax 

In general, Chinese Tax Bureau can issue a duty paid proof to certify the export companies’ tax situation.

8. Bank

The basic bank can provide the duly certificate of the deposit of the Chinese export companies.

9. Visit the factory

Talking with the shareholder is to know the shareholding ratio and organization structure. Talking with the workers is to know the remuneration. Visiting the factory can recognize the weather, energy supply, and water conservancy.