How to Checkout Legitmacy of Foreign Suppliers

**Mr.M** · 05-19-2008 10:34 AM

Good day, everyone. I was wondering if anyone would know of a resource (such as a website, an organization, etc) or ways to find out whether a foreign manufacturer is legitimate.

Mr. M

**E320** · 05-19-2008 10:42 AM

Is you are looking them up in Alibaba, then they have to be GOLD / TURSPRASS members.

**jasaunders** · 05-19-2008 11:15 AM

Define legitimate.

When doing business with a manufacturer, businesses may require third party certifications such as quality registrations, environmental certifications, verify the financial health of a company so that it doesn't go out of business tomorrow, perform audits, and the list goes on and on.

**Mr.M** · 05-19-2008 12:24 PM

By legitimate, I mean a foreign manufacturer that is reputable and not a business that earns money by ripping off new customers, and then closes shop. I just would like to know how would you obtain information about an overseas manufacturer who says they have XYZ business which manufactures a particular product. Information such as how long they have been in business, their customers etc. What resources are available to confirm this?

**entrepresooner** · 05-20-2008 11:05 AM

I am looking to verify the credentials of a chinese manufacturer, let me know what you find, and I'll do the same.

**jasaunders** · 05-20-2008 11:27 AM

Well, you first ask the manufacturer. Ask them to provide their ISO 9000 certificate and verify the certificate with the registrar.
Ask them for references of other businesses they have done business with and check the references.
Ask for a bank reference and call the bank.
Ask for recent financial statements, especially cashflow statements, to verify they are financially healthy.
Ask for a list of recent and ongoing CARs and how they addressed these or what they are doing to address these.
Ask for a copy of their quality manual.
Ask them what type of third party audits they undergo and verify these.

**eternalsunshine** · 05-20-2008 11:29 AM

I'm currently in China. I'm thinking of running a business that helps people verify and connect with their suppliers in China. Give me more information about your manufacturer?

**entrepresooner** · 05-20-2008 11:54 AM

HK Yida Glasses Co. Their website is Contact Us | HK YiDa Glasses Co.,Ltd. | http://www.ydglasses.com

Also, Ningbo Jiangdong Deluxe International Trading Co.,Ltd
Ningbo Jiangdong Deluxe International Trading Co.,Ltd - Sunglasses, spectacles, optical frames

Thanks for any help!

**adamwade** · 05-21-2008 12:03 PM

I am an American that has been doing business in China for the last 5 years. I travel over there 4 times a year and know alot about what makes for a good chinese exporter.

If you are really serious about importing directly you need to spend some time over there. Go and visit the factories or check out a trade fair. the expense of the trip can normally be covered by the profit made on your first container.

if you want to go over sometime send me a PM

**fwn122** · 05-21-2008 02:12 PM

I would be very careful importing anything from China. When the PS3 first came out I ordered one from a company I found on Alibaba to test them out and I got scammed. I only ordered one but if I ordered several I would have lost thousands. There are a lot of fake companys out there. They will seem legitiment and will usually have a proffesional looking web site. They will even respond to your emails. I recieved fake tracking numbers after I made my order. Here are a few rules to go by...

1) Make sure you can find some sort of legit testimonial from somone who has used the company. Chances are if you can't find this the company is fake.

2) Type in the name of the company on google followed by the word "scam" and see if you can find anyone who has already been scammed by the company.

3) If they ask for Western Union or any other money tranfer company as a method of payment than they are definetly a scam. If they were a legit company than they would have no problem using a secure payment method such as paypal which takes only a few minutes to set up.

4) If the company advertises using only free services like alibaba they are most likely a scam.

If you would like to send me the URL I will give you my opinion on the company.

Good Luck,
Frank

**Aletheides** · 05-22-2008 05:54 PM

Samples and small orders.

Adamwade also brought up a good source of legitimate suppliers: trade fairs. You can often see the exhibitor list for trade fairs on the internet if the fair has a website (the big ones do). This can point you in the right direction.

Originally Posted by fwn122

3) If they ask for Western Union or any other money tranfer company as a method of payment than they are definetly a scam. If they were a legit company than they would have no problem using a secure payment method such as paypal which takes only a few minutes to set up.

I have dealt with legit suppliers that only accept WU.