Our Proven Checklist to Verify Chinese Suppliers and Avoid Import Scams

 ✅ Introduction:

In today’s global economy, importing products from China especially furniture has become a highly profitable yet risky venture for businesses in India. With access to thousands of suppliers on platforms like Alibaba, Made-in-China, and Global Sources, the opportunity is huge. But so is the potential for scams, non-compliance, and loss of capital if you choose the wrong supplier.

After managing imports from China for over a decade, we’ve developed and refined a 10-step checklist to verify Chinese Suppliers that helps businesses especially in Hyderabad and South India to confidently source from China without being duped.

This guide will walk you through that exact checklist, supported by real-world insights, trade compliance guidelines, and actionable advice.

Why Verifying Chinese Suppliers Matters

Thousands of Indian businesses have fallen victim to scams like:

• Fake companies disappearing after advance payment
• Low-quality substitutes sent instead of samples
• Fake certifications like CE or ISO
• Ghost factories (agents posing as manufacturers)

Avoiding these pitfalls starts with due diligence. The cost of proper verification is a fraction of what a bad order can cost you.

 ✅ Our Proven 10-Point Checklist

 1. Verify Their Business License

Ask your supplier for a clear copy of their business license. Make sure it includes:

• Unified Social Credit Code (18 digits)
• Legal representative name
• Registration type and business scope
• Issuance and expiry date

Verification tip: Use China’s National Enterprise Credit Information Publicity System (https://www.gsxt.gov.cn) to cross-check the license details.

 2. Check Alibaba Gold Supplier or Equivalent Status

On platforms like Alibaba, look for:

• Gold Supplier badge (paid membership)
• Years of operation
• Transaction volumes
• Verified certifications

⚠️ Caution: Even Gold Suppliers can scam so this is a signal, not a guarantee.

3. Ask for Third-Party Audit Reports

Request recent factory audit reports conducted by independent agencies like:

• SGS
• TÜV SÜD
• Bureau Veritas

Check for:

• Number of workers
• Factory address
• Production lines and capacity
• On-site photos

Red flag: If they refuse or delay sharing, it’s often a ghost factory.

4. Video Call the Factory

Use Zoom or WeChat to request a live video tour of:

• Production areas
• Warehouse
• Office front
• Signboards with company name

️ Bonus: Ask them to show the same address and company name on Google Maps or Baidu Maps during the call.

 5. Ask for 2–3 Trade References

Any legitimate supplier will have past clients who can vouch for them.

Questions to ask references:

• Was the order delivered on time?
• Did the product meet quality expectations?
• How was the after-sales support?
• Would they work with this supplier again?

Use LinkedIn or IndiaMART to double-check the reference company’s legitimacy.

6. Check Their Bank Account Details

Always ensure the supplier’s bank account matches:

• The company’s legal name
• Business license information

Avoid payments to personal accounts or unrelated third parties. Insist on USD bank accounts in China (not offshore unless justified).

Use Payoneer or Escrow.com for added protection.

7. Get a Sample, Then Order a Small Trial Batch

Before placing a full order:

• Request a fully finished product sample
• Compare it to the listing images or drawings
• Pay attention to material quality, finishing, packaging

Pro tip: Try a small MOQ order (Minimum Order Quantity) before scaling. Negotiate that this batch meets full specifications.

8. Use Trade Assurance or Escrow

If using Alibaba, Trade Assurance offers some buyer protection for:

• Delivery delays
• Quality mismatches
• Refund disputes

Alternatively, use third-party escrow platforms (like Escrow.com or T/T with split payments: 30% advance, 70% after inspection).

9. Hire a Third-Party Quality Inspection Agent

Before shipment, get a Pre-Shipment Inspection (PSI) done by professionals like:

• Asia Inspection (QIMA)
• V-Trust
• Tetra Inspection

They inspect:

• Quantity
• Workmanship
• Dimensions and specs
• Packaging
• Labeling

You’ll receive a photo-rich report to approve or reject the shipment.

10. Check for Certifications (CE, FSC, ISO)

If importing wooden or upholstered furniture, ensure your supplier provides:

• CE certification
• FSC (Forest Stewardship Council)
• ISO 9001 (Quality management)

Ask for scanned copies, then verify certification numbers online.

Real Story from a Client in Hyderabad

A Hyderabad-based office furniture startup lost ₹4.2 lakhs to a “supplier” who sent fake wood panels that warped within weeks.

After consulting with We Do Import:

• We got in touch with a new supplier using this checklist.
• They placed a ₹2 lakh sample order first.
• Hired QIMA for pre-shipment inspection.
• Result: Successful import, 45% savings compared to local sourcing, and zero complaints.

FAQs – Verifying Chinese Suppliers

Q: Is it safe to import furniture from China?
A: Yes, if you verify the supplier thoroughly, use legal shipping documents, and perform product inspections.

Q: Can I visit the factory myself?
A: Yes! In-person visits are best, but if that’s not possible, a video tour or third-party inspection can help.

Q: What if my supplier fails to ship?
A: If you used Trade Assurance or Escrow, you may get a refund. If not, you’ll need legal recourse often difficult internationally.

Q: Do I need an import license for furniture in India?
A: Yes. You’ll need an IEC (Import Export Code) from DGFT and comply with BIS standards and GST regulations.

Final Thoughts: Don’t Skip the Checklist

Importing from China can grow your business exponentially but only if you protect yourself.
Whether you’re based in Hyderabad, Chennai, or Bangalore, this checklist can be your safety net against costly mistakes.

We’ve used it with over 100+ clients across India, and the results speak for themselves: fewer scams, better suppliers, and faster scaling.

Ready to Import Furniture from China?

We offer:

• Supplier verification
• Sample procurement
• Pre-shipment inspections
• Customs documentation and clearance

Get in touch today for a free consultation.