China protective case factory audit — B2B buyer checklist 2026

# China protective case factory audit — B2B buyer checklist 2026 A factory audit is non-negotiable for B2B buyers sourcing protective cases from China. 70% of disputes originate from inadequate pre-shipment verification. This checklist covers everything from facility inspection to IP protection. ## Phase 1: Desktop audit (1-2 weeks before site visit) ### Document review - [ ] Business license (营业执照) — verify with SAMR.gov.cn - [ ] Export license (进出口经营资格) - [ ] ISO 9001:2015 certificate (issue date + validity + issuing body) - [ ] BSCI / Sedex audit report (most recent, within 12 months) - [ ] ISO 14001 environmental (if claimed) - [ ] Product liability insurance (USD 1M+ minimum) - [ ] Financial statements (2 years) — verify via Tianyancha or Qichacha - [ ] Litigation history (court records, arbitration cases) - [ ] List of major customers (verify with reference calls) - [ ] Equipment list with year of manufacture ### Sanctions check - [ ] Entity not on BIS Entity List, OFAC SDN, EU restrictive lists - [ ] No ITAR-controlled production without US State Department registration - [ ] Beneficial ownership check (avoid military end-use) ## Phase 2: On-site facility audit (1-2 days) ### Reception & paperwork - [ ] Reception by senior management (sales manager min) - [ ] Business card + ID for all key contacts - [ ] Facility floor plan / production line layout - [ ] Live sample of similar product (not pre-prepared) - [ ] Production capacity table per line ### Production floor - [ ] Production line count (expect 5+ for serious factory) - [ ] Equipment age (injection molding machines 5-10 years is normal) - [ ] Production schedule board (current week / month visible) - [ ] Worker count per shift (typical 30-80 for medium factory) - [ ] Workers wearing PPE, hairnets, gloves (medical-grade work) - [ ] Workstation organization (5S visible) ### Quality control - [ ] IQC station (incoming material inspection) — should have calibrated calipers, scales, spectrophotometer - [ ] IPQC station (in-process) — sample pull at each molding cycle - [ ] FQC station (final inspection) — AQL 2.5 sampling, document recording - [ ] OQC station (pre-shipment) — final random pull, 1-2% sample - [ ] QC documentation retention (5 years typical) - [ ] AQL samples archived per batch (look for boxes labeled with date/batch) ### Materials storage - [ ] PP / ABS / aluminum warehouse (climate-controlled, <30°C, <60% RH) - [ ] Foam storage (separated, sealed from UV) - [ ] FIFO rotation visible (old stock at front) - [ ] MSDS for all materials on file (Chinese + English) ### Test equipment - [ ] IP67 test chamber (1m depth, 30 min) — mandatory for IP67 claims - [ ] IP68 test chamber (3m depth) — for 8-series and 9-series - [ ] Drop test rig (1.2m height, multiple orientations) — for MIL-STD-810H - [ ] Compression tester (ASTM D642) — for crush rating - [ ] Vibration table (IEC 60068-2-6) — for transport simulation - [ ] Salt spray chamber (ISO 9227) — for marine certification - [ ] Spectrophotometer (Pantone color match) - [ ] Calibrated reference standards (ISO 17025 traceability) ### Process capabilities - [ ] Cpk ≥ 1.33 for critical dimensions (wall thickness, latch force, hinge torque) - [ ] First Pass Yield (FPY) ≥ 95% (industry good: 98%+) - [ ] Internal scrap rate < 2% (industry good: < 1%) - [ ] Customer return rate < 1% over 12 months ## Phase 3: Working conditions & social compliance - [ ] Worker age ≥ 18 (Chinese labor law) - [ ] Working hours ≤ 60/week (Chinese labor law, 44 standard) - [ ] Overtime pay (1.5x weekday, 2x weekend, 3x holiday) - [ ] Social insurance (5 insurances + 1 housing fund) — check receipts - [ ] Dormitory condition (if foreign workers on site) - [ ] Canteen / kitchen hygiene - [ ] Fire exits clearly marked and unobstructed - [ ] Fire extinguishers current (annual inspection date visible) - [ ] First aid kits on each floor - [ ] No discrimination, harassment, child labor (BSCI / Sedex verifies this) ## Phase 4: IP protection & confidentiality - [ ] Separate production line for customer-specific tooling (visible in tool room) - [ ] Locked customer-specific mold storage (key access control) - [ ] CCTV in mold room, no customer access without escort - [ ] NCNDA (Non-Compete + NDA) signed for OEM customer-specific designs - [ ] Tool ownership registered in customer name (visible on mold plate) - [ ] No reverse engineering of competing products on same line - [ ] Customer samples stored in separate locked area, not mixed with competitors ## Phase 5: Commercial verification - [ ] Factory ownership verified (Qichacha / Tianyancha) - [ ] No undisclosed parent / subsidiary relationships - [ ] Payment terms clearly documented (avoid 100% upfront for new suppliers) - [ ] Letter of Authorization to act as agent (if applicable) - [ ] Force majeure clause reasonable (no unlimited liability) - [ ] Quality guarantee clause (refund / replace for defects) ## Red flags (immediate reject) - No business license, or expired - Refuses to allow factory walkthrough (cameras off-limits, restricted areas) - Workers in poor condition (visible fatigue, lack of PPE) - Storage areas messy, no FIFO, materials exposed - No calibrated test equipment, only claims - Production in unrelated building (not actual factory) - Quality claims without documentation (no batch records, no AQL) - Reluctant to sign NDA before design disclosure - Major customer references unverifiable (all "OK" but no details) - Litigation history with foreign customers (search court records) - Pressure to pay 100% upfront before sampling ## Pre-Shipment Inspection (PSI) — third-party For first 3 orders, mandatory PSI: - AQL 2.5 sampling per ISO 2859-1, General Inspection Level II - Sample size: 50-125 units per batch (depending on lot size) - Test: visual (defects, color match, label accuracy), functional (latch, hinge, foam fit), dimensional (10 key measurements vs. spec) - Cost: USD 300-500 per man-day, 1-2 days for typical 1,000-piece order ### Recommended PSI firms (China) - **SGS** (global) — most expensive, highest credibility - **Bureau Veritas** (global) — strong in EU compliance - **Intertek** (global) — fast turnaround - **Asia Inspection** (Asia-focused) — competitive pricing - **HQTS** (Hangzhou) — German-speaking auditors - **TÜV Rheinland** (Shenzhen office) — European brand credibility ## Production monitoring (between sampling and shipment) - 30% deposit at order confirmation (NOT 100%) - 30% before mass production start (after sample approval) - 30% before shipment (after PSI pass) - 10% net 30 days after delivery (or held as warranty hold) ## Bottom line A thorough factory audit takes 1-2 days on site + 1-2 weeks document review. Kexin factory in Guangdong passes BSCI and ISO 9001:2015 audits since 2018. We welcome B2B buyers for facility tours any time. Recommended stay: 2 nights, 1 day audit, 1 day follow-up. Hotel: Hilton Guangzhou (USD 80-120/night) or Hyatt Regency Dongguan (USD 100-150/night).