China Factory Audit Checklist: 30 Items Every Importer Should Verify

A factory audit is the single most valuable investment you can make before placing a large order with a Chinese manufacturer. It confirms the supplier is real, capable, and compliant — and reveals the things that don’t show up in a quotation email.

This is the exact checklist our auditors use at Xafair on every visit. Adapt it for your own audits or hand it to a third-party inspector.

Before the Visit

Preparation saves time and reveals inconsistencies:

1. Cross-reference the factory’s business licence address with the address they give you for visiting
2. Check Tianyancha for related entities (subsidiaries, sister companies)
3. Search the legal representative name on LinkedIn and Chinese platforms
4. Review the supplier’s claimed production capacity (e.g., 50,000 pieces/month) against your order size
5. Prepare a 1-page brief of what you want them to produce

If the visit address doesn’t match the licence, do not proceed. This is one of the most common fraud signals.

Premises and Location

On arrival, verify:

6. The factory building has the company’s name on the exterior or reception
7. The size of the facility is consistent with claimed production capacity (a “50,000 pieces/month” factory needs at least 1,500–3,000 m²)
8. The number of production lines, machines, and workers matches what’s been claimed
9. There’s signage, security, and proper factory infrastructure (loading docks, storage)
10. The reception area has visible certifications (ISO 9001, BSCI, Sedex, etc.)

Take photos of the building exterior, reception, and at least one production line. These provide evidence if the supplier later disputes findings.

Licences and Registrations

Ask to see:

11. Business licence (营业执照) — verify against the copy you received beforehand
12. Tax registration certificate (税务登记证)
13. Export licence / foreign trade registration (对外贸易经营者备案登记表)
14. Industry-specific certifications (CE, ISO 9001, ISO 14001, BSCI, Sedex, GOTS, FDA, etc. — depending on product)
15. Customs registration (海关备案) — required for legal export

If the supplier hesitates to show any of these, that’s a red flag.

Production Capacity and Equipment

Walk the production floor and verify:

16. Number of production lines matches the claimed capacity
17. Machinery is well-maintained (no rust, regular calibration)
18. Shift pattern (1, 2 or 3 shifts) and current utilisation rate
19. Raw material inventory is appropriate for production schedule
20. Sub-components and finished goods are properly stored and labelled

Ask the floor manager: “How many pieces can you actually produce per day, given your current capacity?” Compare the answer with the quote — if they claim 5,000 pieces/day but have only 50 workers on a single shift, the math doesn’t work.

Quality Management System

The quality control area reveals more than any document:

21. There is a dedicated QC / QA area with calibrated measuring tools
22. Incoming materials inspection (IQC), in-process inspection (IPQC), and pre-shipment inspection (OQC) are documented
23. AQL sampling is used (ask to see the most recent inspection report)
24. Quality records are retained and accessible (typically 3+ years)
25. Customer complaints and corrective actions are tracked

If the supplier says “we don’t have quality issues” without showing you data, that’s another red flag.

Labour and Working Conditions

Even if you’re not Sedex-audited, a basic welfare check protects your brand:

26. Working hours are within legal limits (8/day, 44/week, with overtime pay)
27. Fire exits are unobstructed and clearly marked
28. Fire extinguishers are present and within service date
29. Workers wear appropriate PPE (masks, gloves, safety glasses as needed)
30. There is a designated smoking area away from production

Supply Chain and Sub-Contracting

Many “factories” sub-contract up to 50% of their work. Ask directly:

31. What percentage of production is sub-contracted?
32. Which processes are sub-contracted?
33. Can you visit the sub-contractor facility?

If the supplier refuses to disclose or denies any sub-contracting despite obvious capacity constraints, assume 30–50% is sub-contracted. Decide whether that’s acceptable for your product.

Red Flags to Escalate

Walk away or escalate to senior management if you find:

• Address mismatch between licence and visit location
• Production lines empty or running well below capacity during a “busy” season
• Workers unable to answer basic questions about the product
• No written quality records despite “ISO 9001 certified” claims
• Sub-contracting above 50%
• Aggressive resistance to photographing production
• Fire exits blocked or safety equipment expired
• Different legal representative on licence vs. your contact

Xafair’s Factory Audit Service

Xafair conducts independent on-site factory audits across China with:

• 48-hour report turnaround
• 12–18 page PDF report with 30+ photos and 5–10 min video
• Risk rating (Low / Medium / High)
• Bilingual auditors (English report, Mandarin site visit)
• Aligned with ISO 9001, Sedex SMETA, and BSCI standards

Cost: $300–$600 depending on factory location. Save thousands by catching issues before your deposit goes in.

Book an audit — we’ll respond within 24 hours.