Answers
Straight answers, with the source named
One question per page. A direct answer in the first paragraph, the detail underneath, the official source at the foot, and the date we last checked it. Where the rules move faster than we can review them, we say so and send you to the authority rather than quoting a number that will age badly.
Supplier verification
- Is my Chinese supplier a factory or a trading company? Check the registered business scope on the company’s Chinese business licence. A manufacturer’s scope contains 生产 or 制造 (production/manufacturing) for the relevant goods; a trader’s scope contains only 销售 or 贸易 (sales/trade). Scope is the strongest single signal, but confirm it against headcount, address type and site evidence before you rely on it.
- How do I verify a Chinese company’s business licence? Search the company’s exact Chinese name or its 18-character Unified Social Credit Code at gsxt.gov.cn, the national registry run by China’s market-regulation authority. The record shows legal status, registered capital, legal representative, business scope and any abnormal-operation listing. A licence image sent by the supplier proves nothing until it matches that record.
- What does an Alibaba Gold Supplier badge actually mean? Gold Supplier is a paid membership tier, not an audit of quality or honesty. It confirms a company paid for the listing and passed the platform’s identity checks. It does not verify manufacturing capability, product quality, or that the account is still controlled by the company originally verified. Treat it as a baseline, not assurance.
Customs
- Can I still ship low-value parcels from China duty-free? No — not in the United States, and the same exemption has been withdrawn or is being withdrawn across the EU and UK. Low-value parcels from China now require a formal customs entry and attract duty. Confirm the current rule for your destination with that country’s customs authority before you quote a landed cost.
- What tariffs apply to Chinese goods now? There is no single rate. Duty on a Chinese-origin good is a stack: the base tariff for its HS code, plus any product-specific trade measures, plus any economy-wide measure currently in force. Each layer sits under a different legal authority with a different lifespan, so the total moves. Your HS code determines your rate.
- Who is the importer of record, and why does it matter? The importer of record is the party legally responsible for a shipment entering a country: paying duty, declaring a correct classification and value, and holding the records. It is normally the buyer, not the supplier and not the marketplace. The liability follows the role, regardless of who physically arranged the freight.
Compliance
- Can I legally audit my Chinese supplier? Yes, with real limits. Reviewing public registry records and visiting a supplier who has consented are lawful and normal. Covert investigation, data scraping, purchased personal data and undisclosed enquiries are not, and China has tightened enforcement around foreign-directed supply-chain investigation. Build the file from disclosable sources only.
- What is an EU Responsible Person under GPSR? An EU Responsible Person is an economic operator established in the European Union who is named for a consumer product and holds compliance responsibilities for it — keeping technical documentation, cooperating with market surveillance authorities, and acting on safety issues. Products without one may not lawfully be placed on the EU market.
Comparisons
Side-by-side answers to the “which of these do I actually need?” questions — where the wrong choice is usually caused by not knowing the two things are different.
- Sourcing agent or independent verification — which do I need? A sourcing agent finds and manages suppliers, and is usually paid a commission by the seller. An independent verifier is paid only by you and gives no recommendation they profit from. Use an agent for ongoing procurement capacity; use independent verification whenever the answer needs to be untainted by who pays for it.
- Third-party inspection or supplier verification — what is the difference? Inspection examines goods against a specification, usually before shipment, and tells you whether this batch conforms. Verification examines the company — its legal identity, structure, capability and record — and tells you whether to deal with it at all. Verification comes first; inspection is repeated every order.
- WFOE, representative office, or no entity at all? A WFOE can trade, invoice and hire in China but carries full accounting, tax and audit obligations. A representative office can only liaise and research — it cannot invoice. No entity at all is the right answer more often than people expect, using a distributor or cross-border e-commerce instead.
- Is Trade Assurance enough, or do I still need my own due diligence? Platform payment protection covers defined order disputes — non-delivery, or goods differing from the agreed order — where the transaction stayed on the platform and within its process. It does not verify who you are dealing with, cover off-platform payments, or help once the window closes. It is a remedy, not a check.
- Should I move sourcing from China to Vietnam? Moving final assembly to Vietnam changes your tariff exposure only if origin genuinely changes, which requires substantial transformation there — not relabelling. Most relocated production still depends on Chinese components, so buyers usually end up managing two supply chains and a documentation burden rather than replacing one with the other.
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