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 (business license) — verify with SAMR.gov.cn
• Export license (import-export qualification)
• 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).